Bundesbank warns on ‘moral hazard' from low interest rate environment
The Deutsche Bundesbank is concerned that persistently low interest rates are leading to increased risks for financial stability, especially in the insurance sector, according to the central bank's 2013 financial stability review.
The report, presented by deputy president Sabine Lautenschläger and executive board member Andreas Dombret a week after the European Central Bank cut its main interest rate from 0.50% to 0.25%, acknowledges that low interest rates have "for some time been a pivotal
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