Bundesbank’s Dombret: Calls for quantitative easing in euro zone are problematic, close to monetary financing

• Critical of IMF for overstepping responsibility of monetary policy for solving economic policy challenges
• Support IMF call for confidence building measures in euro zone
• Expect further weakening of German growth in 2012
• See increasing growth risks in Germany for 2013
• IMF should keep an eye on risks outside euro zone
• Intensification of euro zone crisis could erode confidence, hit domestic economy
• Germany still needs to have own IMF director

Think it’s fair to say the Bundesbank is just a little peeved with the IMF.

The obvious tensions and rather depressing comments regarding German growth don’t appear to have underminned the single currency any, EUR/USD relatively steady at 1.2970.