New ECB plan means the end of the forward loan

3/11/2021, 6:32:32 PM

In their most recent meeting, the monetary authorities made it clear that they would not tolerate rising yields. So in order to achieve higher inflation without higher interest rates, the ECB draws a red line. That in turn means completely new rules for borrowers.

If the European Central Bank (ECB) were to drive a specific financial product into ruin in the long term with its zero interest rate policy, then German life insurance would be considered the hottest candidate.

After all, it is difficult to generate fixed annual return commitments for customers in interest-free times.

But after the ECB meeting on Thursday, the bets are different.