Dr Dirk Schumacher – Chief Economist of KfW

“The Governing Council of the ECB will leave interest rates unchanged at its upcoming meeting. The data has developed largely as expected: the eurozone economy is growing moderately and inflation is roughly at the ECB's 2% target. Geopolitical risks will dominate the discussion in the Governing Council. Although the conflict over Greenland appears to have been resolved for the time being, the ECB is under no illusion that tensions could flare up again at any time. This means that uncertainty about the future economic outlook remains high. The strong appreciation of the euro is just another sign of this uncertainty. The strength of the euro does not reflect economic dynamics, but rather growing mistrust of American politics. It is therefore likely that the ECB will signal a certain unease about the strength of the euro, without, however, announcing any concrete measures.”

Dr Dirk Schumacher