Bundesbank flags German inflation risks tilted clearly to upside

The Bundesbank's explicit upside skew matters less as a forecast than as a signal that Germany's inflation problem is being framed as structural rather than transient. That framing flows directly into the euro-area rate debate, since German price dynamics anchor the ECB's hawks and complicate any easing path. For crypto and RWA markets, the transmission is indirect but real: a higher-for-longer euro rate backdrop keeps the euro carry story alive and narrows the relative appeal of non-yielding assets. The open question is whether this Bundesbank language is echoed by other national central banks or remains a German outlier.