One of the most respected Bundesbank observers, BHF Bank chief economist, Mr Hermann Remsperger, has been nominated for a key post on the German central bank's policy-making council yesterday.

The German finance ministry said Mr Remsperger had been put forward for the post of chief economist at the Bundesbank, a job that had previously been held by Mr Otmar Issing, who joined the European Central Bank on June 1st.

A Bundesbank spokesman later said the government was likely soon to give final approval to Mr Remsperger's nomination, allowing him to join the institution on September 1st.