The comments of the German central bank in its monthly report were as follows:
- Some factors supporting the economy make it more difficult to achieve the inflation target.
- Labor markets are still functioning at high capacity.
- Wage growth is growing rapidly and prices are rising strongly, especially in the service sector.
- Any possible further cuts in interest rates should therefore be carefully considered in the light of current data.
In addition, they noted that the German economy itself is likely to grow a little slower than expected in the second quarter.
