5 Dec 2014
Bundesbank cuts GDP and Inflation forecasts – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team notes that Germany’s Central Bank has cut the GDP and inflation forecasts for 2014-16, with Weidmann pointing out that the overall German economy is in a good shape.
Key Quotes
“German Bundesbank cuts both GDP and inflation forecasts for 2014-16 period. It noted that if crude oil prices remained subdued for an extended period of time, growth in the 2015+ time period could be 0.1-0.2% higher. Overall it stated the German economy was still in very good shape.”
“German Bundesbank President Weidmann stated that he saw oil driven low inflation differently and was very uncomfortable position as a Central bank. Monetary policy was too expansive for Germany's liking. He stressed that it could not use same formula that was used in Japan and elsewhere in the Euro Zone. European treaties rule out mutualization of risks”
“The Bundesbank forecasts for headline inflation released in the session sees it back at levels in line with the ECB's definition of price stability by 2016 also ties in with Weidmann's hawkish stance on additional easing measures.”
Key Quotes
“German Bundesbank cuts both GDP and inflation forecasts for 2014-16 period. It noted that if crude oil prices remained subdued for an extended period of time, growth in the 2015+ time period could be 0.1-0.2% higher. Overall it stated the German economy was still in very good shape.”
“German Bundesbank President Weidmann stated that he saw oil driven low inflation differently and was very uncomfortable position as a Central bank. Monetary policy was too expansive for Germany's liking. He stressed that it could not use same formula that was used in Japan and elsewhere in the Euro Zone. European treaties rule out mutualization of risks”
“The Bundesbank forecasts for headline inflation released in the session sees it back at levels in line with the ECB's definition of price stability by 2016 also ties in with Weidmann's hawkish stance on additional easing measures.”