Given the current interest rate exposure of around € billion, a rise of one percentage point in the key interest rates would lead to an annual financial burden of around € billion. This is a new situation for us. Back when monetary policy only steered short-term interest rates on the money market, the Bundesbank’s balance sheet was, de facto, free from interest rate risk.
For example, in his June 19 press conference, he said: If the incoming data are broadly consistent with this forecast, the Committee currently anticipates that it would be appropriate to moderate the monthly pace of purchases later this year.