German government says can do little to prevent property bubble

LUXEMBOURG, June 20 Fri Jun 20, 2014 8:03am EDT

LUXEMBOURG, June 20 (Reuters) - The German government can do little to prevent a real estate asset bubble from forming but point out that central bank liquidity is too high, rather than too low, German Finance Minister Wolfgang Schaeuble said on Friday.

Schaeuble was asked what the government would do if property prices were to rise dangerously fast due to record-low interest rates, a day after the minister warned about it happening.

"The government can do relatively little but point out that we do not have too little central bank money in the financial markets but rather too much and that therefore it is necessary to support the ECB (European Central Bank) to move forward together with other central banks in the world," Schaeuble said. (Reporting by Annika Breidthardt, editing Jan Strupczewski)

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