July 22, 2024 at 11:22AM
Some of the factors supporting the economy are making it more difficult to achieve inflation target
The labour markets is still operating at a high capacity
Wage growth is brisk and prices are rising strongly, particularly in the services sector
Possible further interest rate cuts should therefore be carefully considered in light of current data
Besides that, they noted that the German economy itself likely grew a little slower than anticipated in Q2. Well, that’s not too surprising given that the industrial sector remains in a recessionary state.
This article was written by Justin Low at www.forexlive.com.
Bundesbank calls for rate cuts to be “carefully considered” as inflation risk persists