German central bank out with their monthly report

  • 2017 inflation 1.75% vs 2.0%

Citing oil price falls as key factor

"Fluctuations in the price of oil typically have a very fast and noticeable effect on the price of energy for consumers"

while also noting the impact on the price of other goods.

  • could see some pickup in German GDP in Q1
  • key driver of economic growth still domestic demand

Euro unfazed by the report but these revisions will not have gone unnoticed by the ECB who will in turn look to reduce their own forecasts, which could in turn lead to further easing

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