ECB should plan for higher interest rates - German bank association

BERLIN, Jan 9 (Reuters) - The European Central Bank’s low interest rates are causing problems for banks and it is time for the ECB to start “a very careful change in policy direction” partly due to a pick-up in inflation, Germany’s BdB banking association said on Monday.

“The low interest rates are a huge problem for banks, but the ECB’s interest rate turnaround should be implemented carefully,” the BdB said, adding that the euro zone monetary union had not solved all of its problems yet.

The comments came after German Deputy Finance Minister Jens Spahn told Reuters on Friday that the ECB’s expansive monetary policy has numerous side-effects and a “prudent start to the exit” of the stimulus is therefore desirable. (Reporting by Gernot Heller,; Writing by Michael Nienaber; Editing by Joseph Nasr)