Wires

Bundesbank's Dombret rejects calls for QE in euro zone

FRANKFURT, Oct 8 (Reuters) - Calls for quantitative easingin the euro zone are rife with problems and could break therules banning the central bank financing governments, Bundesbankboard member Andreas Dombret said on Monday.

"In this context, the Bundesbank sees explicit suggestionsby the IMF critically," Dombret said in a news conference.

"The calls by the IMF that there should be monetary easingby quantitative easing are rife with problems as theyredistribute insolvency risks and are close to monetaryfinancing of governments."

Dombret said he expected the German economy to weakenfurther this year and saw increasing growth risks in Germany fornext year, adding that an intensification of the euro zone debtcrisis could erode confidence.

(Reporting by Sakari Suoninen)

((sakari.suoninen@thomsonreuters.com)(+49 69 7565 1267)(ReutersMessaging: sakari.suoninen.thomsonreuters.com@reuters.net))

Keywords: ECB/BUNDESBANK