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Inflation in Germany is now seen “just somewhat” higher than Bundesbank’s December forecast of 1.8%, Jens Weidmann, European Central Bank (ECB) Governing Council member and Bundesbank President, said on Wednesday, per Reuters.

Additional takeaways

” If vaccines are successful, the German economy will see a lasting recovery.”

“German HICP to exceed 3% by year-end but only temporarily.”

“Bundesbank expects marked decline in aggregate economic activity in Germany for the current quarter.”

“Bundesbank raises provisions on rising interest rate risk and default risk; won’t distribute profit.”

Market reaction

The EUR/USD pair showed no immediate reaction to these remarks and was last seen posting small daily gains at 1.2094.