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ING International: Germany's plan for additional spending could cause the ECB to cut interest rates less often
On March 10, ING analysts said in a report that Germany’s proposal to increase spending may limit the European Central Bank’s interest rate cuts. Analysts say the ECB is likely to hold its ground in April and cut interest rates once before the summer. The planned additional spending is likely to boost economic growth, but it will take some time to see positive effects, and “capital investment will take time to deploy.” ”