FRANKFURT (MNI) – The outlook for the German economy is surrounded
by high uncertainty that poses significant challenges to monetary
policy, the Bundesbank said in its Monthly Report on Monday.
“The outlook for further economic is characterized by great
uncertainty,” even if the German industry managed to post higher order
in the first two spring month, the report cautioned.
The uncertainty surrounding economic developments in general and
inflation in particular in Germany and elsewhere is posing significant
challenges for monetary policy, the German central bank said.
In this context, “central banks should not only take into account
the most probable median outcome, but incorporate the totality of
possible future real economic and inflation developments into its
decisions,” the report said.
In a special section on the Bundesbank’s Spring Conference, the
report pointed out that both academic and verbal contributions warned
against overburdening monetary policy with additional tasks such as
financial stability and economic growth.
–Frankfurt bureau tel.: +49-69-720 142 Email: jtreeck@marketnews.com
[TOPICS: M$X$$$,M$G$$$,M$$EC$,MT$$$$,MFGBU$]
