However, especially in highly uncertain times of economic upheaval, model results must be interpreted with caution. Additional shocks followed. Geopolitical tensions are impacting future global economic relations; Russia’s invasion of Ukraine has necessitated a paradigm shift in terms of security and energy policy; addressing climate change is an urgent concern. Scenarios that were once considered “adverse” have now become a reality.
Inflation in Germany, which stood at 6.9% last year and, most recently, 7.6% in April, remains considerably too high. [16] In the past year alone, interest rates have risen by around 300 basis points. For the sake of comparison, the calculation of the Basel interest rate coefficient assumes an increase in interest rates of 200 basis points.