Bundesbank Report: Expect a sharp slowdown in the German economy in Q2

The German central bank, Bundesbank (Buba) published its latest monthly report on Monday, noting that it expects German economy to slowdown in Q2.

Key Findings:

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