German economy likely to slow in spring – Buba monthly report

The latest Bundesbank (Buba) monthly report published this Tuesday showed that the German economy is seen to lose momentum in spring.

Key Points:

Economy likely to lose momentum in spring

Underlying growth trend remains solid

EMU inflation will remain weak in near term, then rise

Monetary policy debate should avoid a one sided focus on savers

Expansionary mon pol is appropriate given low inflation

It is crucial to implement Greek reforms strictly and completely

Swift debt relief is not necessary for progress