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Bundesbank's Dombret rejects calls for QE in euro zone

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

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

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

Dombret said he expected the German economy to weaken further this year and saw increasing growth risks in Germany for next year, adding that an intensification of the euro zone debt crisis could erode confidence.

(Reporting by Sakari Suoninen)

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

Keywords: ECB/BUNDESBANK