- Christian Schulz, Senior Economist at Berenberg Bank
Consumer prices in Germany, the euro area's largest economy, rose to 2 per cent annual rate in August, pushed up by higher energy prices, Federal Statistical Data showed on Wednesday.
"The ECB is running a very accommodative, stimulating monetary policy with interest rates being very low. In the German situation these rates might be too low," said Christian Schulz, Senior Economist at Berenberg Bank.
"For us this just confirms a rate cut is very unlikely now - what is much more likely is that the ECB will do everything it can to reestablish the transmission of monetary policy."
Also Wednesday, a report showed Italian retail sales rose 0.4 per cent in June, after increasing by 0.1 per cent in May. The figure came in above the forecast of 0.1 per cent decline.
The Stoxx Europe 600 Index slid 0.12 per cent to 267.01. Germany's DAX Index gained 0.11 per cent and France's CAC 40 Index fell 0.51
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