Central Banks

ECB’s Nagel: We assume German economy will slowly pick up some momentum again

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ECB’s Nagel is on the wires saying that:

  • We assume German economy will slowly pick up some momentum again.
  • The main factors behind Germany’s growth has been the energy crisis, weak foreign demand and high inflation
  • The consequences of high inflation have depressed economic activity.
  • Many consumers have held back on spending.
  • The tight monetary policy is dampening the economy

The ECB has cut rates 2 separate times this year. That has taken the main refinancing rate from 4.5% to 3.65%. The ECB is expected to skip a change at the next meeting in October, but cut again in December.

This article was written by Greg Michalowski at www.forexlive.com. Source