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 inflationThe 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.
