IMF Meeting: Bundesbank Sees Opportunities for Longer Growth
Germany is expected to emerge from a long economic downturn - but will this be only a short-term effect? And what will happen to the recently increased inflation?
Bundesbank President Joachim Nagel sees opportunities for sustained economic growth in Germany and hasn't ruled out further interest rate hikes to combat inflation. The European Central Bank (ECB) will take necessary steps to return to its 2% inflation target, Nagel said at the International Monetary Fund (IMF) annual meeting in Bangkok.
He noted that if the current situation persists, another interest rate increase may be needed, following two recent hikes. According to forecasts, Germany is expected to experience its sixth consecutive year of inflation above 2% in 2026. The IMF has raised its growth forecast for Germany to 1.3% for 2026.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
