Bundesbank report: Expects sharp slowdown in Q2

[thenews]

Latest Buba monthly report

• Expects a sharp slowdown in the German economy in Q2 before rebounding in the second half of the year
• Volatile 1st half disguises robust fundamentals
• ECB must normalise as soon as inflation is on track
• Undesired effects of QE increase with its duration
• Fiscal policy and financial stability mustn't slow normalisation

If inflation gets to 1.5% the Germans will come out all guns blazing about tightening monetary policy.