Bundesbank says ECB forward guidance not an unconditional commitment

FXstreet.com (Córdoba) - At its monthly report, Germany's central bank raised doubt over the European Central Bank's commitment to keeping rates at current low levels for an extended period of time.

The Bundesbank said the so-called forward guidance, which the ECB outlined in July, was not an "unconditional commitment". Germany's central bank noted that rates could rise if inflation pressures emerge.

German economy returning to normal

The central bank also noted that Germany's economy will slow for the remainder of the year after a robust second quarter, while pointing risks to growth. "After a second quarter marked by catch up effects, economic growth in Germany is likely to return to normal and steady rates," said the Bundesbank.