EUR: comments from Bundesbank
Germany’s central bank said that the ECB’s forward guidance was not an “unconditional commitment”. Remember the European Central bank pledged to keep rates at current low levels for an extended period of time? Well, the Bundesbank noted that rates could rise if inflation pressures emerge. In fact the ECB guidance did not exclude a rate hike if inflationary pressure turned out to be stronger than currently expected.
The Bundesbank also said that German economy should stabilize in the second half of 2013 after posting its strongest growth in over a year in the second quarter,