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Bundesbank chief predicts euro zone recovery will continue

[FRANKFURT] Germany's central bank reduced the provisions it sets aside to cover possible losses in 2015 as its president predicted that the economic recovery in the euro zone would continue this year and next. "The euro area's gradual economic recovery is likely to continue in the rest of this year and in 2017," said Bundesbank chief Jens Weidmann, cautioning that any further loosening of monetary policy could have negative side effects would be"dangerous to simply ignore".

The Bundesbank said that it had reduced its so-called risk provisions, which cover potential losses, by 800 million euros to 13.6 billion euros in 2015 after a reduction in its holding of government bonds bought under earlier bond buying schemes.