Bundesbank calls for rate cuts to be “carefully considered” as inflation risk persists

• Some of the factors supporting the economy are making it more difficult to achieve inflation target
• The labour markets is still operating at a high capacity
• Wage growth is brisk and prices are rising strongly, particularly in the services sector
• Possible further interest rate cuts should therefore be carefully considered in light of current data

Besides that, they noted that the German economy itself likely grew a little slower than anticipated in Q2. Well, that’s not too surprising given that the industrial sector remains in a recessionary state.

This article was written by Justin Low at www.forexlive.com.