Bundesbank comments on the German economy in its monthly update

  • Economic recovery will likely take a breather
  • Supply disruptions, new COVID-19 restrictions to weigh
  • German inflation seen just below 6% in November
  • Sees headline inflation well above 3% for longer, core inflation also seen substantially above the 2% level

Nothing out of the ordinary from their remarks and it reaffirms the view that inflation pressures are still at strong levels and likely to keep that way going into the early stages of next year, with policymakers hoping for things to calm down by 2H 2022.