(CEP News) Frankfurt - Following the release of the ZEW economic sentiment indicators for Germany and the euro zone, as well as the German current situation indicator, ZEW President Wolfgang Franz stated that the European Central Bank should keep its main refinancing rate unchanged until the end of the market crisis, adding he expected the central bank to raise rates in the near future, and should do so, to fight inflation.
"If inflation rates hold, I recommend an interest rate hike," Franz stated.ZEW economist Sandra Schimdt stated that the consumption forecast in Germany was "negative" and that investors expected second quarter economic growth to slow.
Additionally, according to Schimdt, investors expect the ECB to leave its interest rate unchanged.
Schimdt also emphasized that it was the higher-than-expected German Q1 GDP data that was released on May 15 that boosted the current situation indicator.
By Todd Wailoo, twailoo@economicnews.ca
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