The interest rate decision in Berlin is being used as a platform to assess Bundesbank chief Joachim Nagel’s suitability for the ECB presidency, with high‑profile appearances such as a gala dinner with the Chancellor and a speech before the Federal President highlighting his candidacy.
In an interview, Bundesbank board member Burkhard Balz defended the bank’s decision to close employee accounts and to phase out 1‑ and 2‑cent coins, while reiterating his confidence in the continued relevance of cash.
Following a court ruling and prolonged frustration among staff, the Deutsche Bundesbank has decided to offer fee‑free checking and depot accounts to its workforce and retirees, closing the controversy over account charges.
Sabine Mauderer, Vice President of the Deutsche Bundesbank, warns that fossil fuel dependence poses a location risk for Germany and Europe, calling for significantly faster progress on energy transition and setting clear policy expectations.
Bundesbank President Joachim Nagel expresses doubt about geopolitical de-escalation in the Middle East, warning that much can change in 60 days. His concerns relate to potential disruptions at the Strait of Hormuz and their inflationary implications for the Eurozone economy.