March 26, 2015 / 3:28 PM / in 3 years

Low interest rates causing 'huge problems' in Germany: Schaeuble

BERLIN (Reuters) - German Finance Minister Wolfgang Schaeuble said on Thursday that record low interest rates were causing considerable problems in Germany but added that he was not criticizing the European Central Bank which needed to defend its inflation target.

German Finance Minister Wolfgang Schaeuble attends a news conference in Berlin March 18, 2015, on Germany's budget and financial plan for 2015 to 2019. REUTERS/Axel Schmidt

“We have an interest rate environment that is causing huge problems for us in Germany,” he said at a banking event in Berlin.

“A low interest rate leads to a misallocation of resources with all the risks and side-effects that you see when bubbles are forming,” he said, adding that there was too much central bank money and debt in the world.

Reporting by Matthias Sobolewski; Writing by Michelle Martin and Caroline Copley; Editing by Noah Barkin

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