Jens Weidman. Photo: Reuters
The value of savings in Germany is no longer increasing, but is decreasing – due to low interest rates against the backdrop of inflation. This is what the president of the German Federal Bundesbank Jens Weidman said in his interview with Frankfurter Allgemeine Sonntagszeitung
. According to him, the real return achieved by an average German household with its portfolio in the current year falls below zero. The financial wealth of the population is less common
"I understand the dissatisfaction of the savers because of the low interest rates," Weidman told the media
"The German savior sees that with zero interest rates and 2% his situation is shrinking," said the banker and criticized the plans of the European Central Bank to raise interest rates in the middle of 2019.
In times of prosperity when the financial markets are booming, the reins must be tightened up in turn. , from Waidman & # 39; s point of view, was not fast enough before
The figures on which the negative revenue is based, can be found in the new monthly report of the Bundesbank, which will be published Monday. the negative return on the average portfolio was offset by the return on older bonds with higher returns, but mainly by price gains. However, this has been changed for the first time
In addition to the zero interest rate policy of the European Central Bank (ECB), the reason is that stock prices do not grow strongly due to global political trends, such as the current currency crisis in Turkey.