This of course comes after the ECB itself reporting a €1.6 billion loss just last week here. The Bundesbank itself is posting a €172 million loss for the year 2022, but this is covered by provisions accumulated over the years.
Much like the ECB, the German central bank is paying the price for rate hikes as that contributed to the reduction of value of its bond holdings. With inflation being sticky and rates staying higher, further losses are likely and raises just a tiny bit of doubt on buffers at the central banks in Europe.
