•   
  •   

World monetary policy: Interest reversal could lead to losses at central banks

09:50  30 november  2022
09:50  30 november  2022 Source:   handelsblatt.com

Austrian central bank boss for further ECB interest rectification by 0.75 points - nail: 50 basis points are also a big step

 Austrian central bank boss for further ECB interest rectification by 0.75 points - nail: 50 basis points are also a big step The head of the Austrian central bank, Robert Holzmann, wants to keep the monetary spotting speed high in the euro area. © provided by Finanzen.net Ralph Orlowski/Getty Images for the next interest session of the European Central Bank (ECB) in mid -December, he spoke out for a renewed increase in the key interest rates by 0.75 percentage points, as Holzmann of the Economics "Financial Times "(Tuesday) said.

The expenses of the ECB increase significantly due to the higher interest rates. These press the central bank's profit. Even losses are possible for the current year.

Die EZB ist nach der Zinswende durch höhere Zinsausgaben an die europäischen Geschäftsbanken belastet. Foto: dpahttp://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA14HyYb.img?h=533&w=799&m=6&q=60&o=f&l=f © provided by Handelsblatt The ECB is charged to the European commercial banks after the turnaround of interest. Photo: Dpadata portal copyright =

The European Central Bank (ECB) warns of losses in the course of its rapid interest reel. Due to the long -term deposit rate, the monetary authorities pay many billion euros in interest rates to the commercial banks, which are parked with excess funds at the national central banks of the eurozone.

Real estate credit: The ECB is pushing for the adoption of variable rates in France

 Real estate credit: The ECB is pushing for the adoption of variable rates in France your Browser DOES NOT Support This Video The ECB wishes to generalize the use of variable rates to finance real estate loans. A policy that goes against the French banking tradition and which arouses many reservations of professionals in hexagonal finance. France is distinguished from most European countries by the pre -eminence of fixed interest rates, with regard to of real estate purchases .

The euro guards would have to combat the record-high inflation rates with interest incidents, which leads to increasing interest expenses due to payments to the money houses, the ECB announced on Tuesday on its website. "In this case, our profit sinks and we could even make losses," she said.

The ECB had launched trillion -heavy bond purchase programs in recent years and helped the commercial banks with super cheap long -term loans. This increased the surplus liquidity of the banks massively. For years, the commercial banks had to pay penalty interest in the euro area if they parked excess funds with the national central banks.

In June, the deposit rate in the currency area was 0.5 percent. In the meantime, however, the ECB has raised the sentence to 1.5 percent within a few months - and ECB President Christine Lagarde has promised further interest rates.

The airbase that became a symbol of Russian defeat

  The airbase that became a symbol of Russian defeat Chornobaivka has earned its status as one of the most important battlefields of the war. Russian hardware was airlifted in with the aim of reinforcing troops in the south. The initial ambition was to advance along the southern coast of Ukraine, first to Mykolaiv and then Odesa.Most importantly, the airbase at Chornobaivka enabled Russian troops to steer clear of dangerous river crossings as they pushed to the west. But occupying the base was to prove difficult.

over time the losses ezbied again, the ECB explained. Because the income of the Euro-Note banks with the bonds and other titles they have kept would increase again. In addition, the red numbers could become smaller if the euro guards reduced assets and decreased by the commercial banks at the national central banks.

Nagel does not conclude losses of the Bundesbank from

in the medium perspective, the return to a positive interest rate environment supports profitability. "You shouldn't forget that central banks are not like ordinary companies: they can lose money and still work efficiently," says the ECB.

Bundesbank President Joachim Nagel recently pointed out that the Bundesbank has formed provisions of around 20 billion euros in the case that interest rates will increase again. Nagel Castle Castle for the Bundesbank. If it came about, this would not be the first time, he said to journalists in Frankfurt a few days ago.

Global stock markets to crash next year, investment bank says

  Global stock markets to crash next year, investment bank says Central banks around the world are working to get inflation back under control — but it will come at significant economic cost, Deutsche Bank warns.The price of petrol, gas, electricity and food continues to climb in many countries.

The German central bank had already written red numbers in the 1970s. However, Nagel does not expect the state to reject capital for the Bundesbank. The German central bank had only submitted balanced balance sheets for the two past Corona years and no longer transferred profits to the federal government.

more: The fear of a new crash of the financial system is growing

readers: gift tax: Inheritance or gift: From 2023 it will be so expensive for owners of real estate

precious metals: Gold dealer Degussa provides managing director Markus Krall Frei

Risk management: The fear of a new one Crash of the financial system is growing

Ukraine War: Russia is targeting Scandinavia-Finland reacts with a drastic defense measure

Business: Minus 5.7 percent: Real wages go back significantly due to inflation in the third quarter

Why landlords will be laughing next year as house prices increase .
SQM Research is expecting property prices to start recovering next year after the Reserve Bank of Australia stops raising interest rates. This would benefit landlords as rents keep soaring.SQM Research is predicting some double-digit home price rises in 2023, with managing director Louis Christopher forecasting an end to Reserve Bank of Australia rate hikes by the middle of the year - and a return to rate cuts.

usr: 1
This is interesting!