Germany's central bank comments in its monthly report
- Risks to future activity are skewed to the downside
- Probability has increased for a sharp downturn exposing vulnerabilities
- Contagion to banks may amplify the downturn
- Bank buffers might not be sufficient if several stability risks materialise simultaneously
Not a very confident showing here from the Bundesbank. This pales a lot in comparison to their upbeat tone seen for much of the year and signifies that they're starting to feel a little uneasy about the economic slowdown in the country.
