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