German institutes: More ECB easing justified, if inflation remains weak

The German economic institutes released its latest forecasts on the German economy this Thursday.

Key Details:

2016 GDP 1.9% vs 1.6% prior

2017 1.4% vs 1.5% prior

2018 1.6%

German Q3 GDP likely to be lower than Q2's 0.4% mainly on weaker foreign demand

German government should focus more on growth oriented investments rather than spending that boosts welfare and consumption

If inflation remains weak the majority of institutes believe further monetary stimulus is justified

ECB should wait and weigh the impact of policy already implemented and not announce a further expansion of bond buying