Bundesbank report: Expects sharp slowdown in Q2

New comment
 

Latest Buba monthly report

  • Expects a sharp slowdown in the German economy in Q2 before rebounding in the second half of the year
  • Volatile 1st half disguises robust fundamentals
  • ECB must normalise as soon as inflation is on track
  • Undesired effects of QE increase with its duration
  • Fiscal policy and financial stability mustn't slow normalisation

If inflation gets to 1.5% the Germans will come out all guns blazing about tightening monetary policy.

New comment