The outlook for Germany's economy remains upbeat. The Bundesbank's latest half-yearly projection singles out buoyant domestic demand as the main factor driving the robust upswing. Exports are also predicted to gain renewed traction from 2017 onwards.

At the Bundesbank's banking symposium Andreas Dombret has warned against the dangers of hastily implementing the European Commission's proposals to introduce a joint European deposit guarantee scheme.

On 10 and 11 June, central bankers and academics will convene in Eltville am Rhein for the Spring Conference 2016. The focus of the conference will be on the interaction between monetary, financial and fiscal policy. This high-level event is being organised by the Bundesbank.

Germany's economy grew strongly at the start of 2016, the Bundesbank writes in its latest Monthly Report. Exports had recovered from a lull to join private consumption and construction activity in propelling activity.

In a speech he gave in Frankfurt am Main, Bundesbank President Jens Weidmann stated that it was indeed appropriate to make the regulation of the banking sector more stringent as a lesson learned from the financial crisis. However, he added that a further tightening (Basel IV) was not on the agenda. He also refuted the accusation that Germany was saving too much and investing too little.

According to the calculations of the Federal Statistical Office, the German economy grew by 0.7 % in the first three months of 2016, with households and general government being the main drivers. In April, consumer prices fell for the first time since January 2015.

In a speech in Rome Bundesbank President Jens Weidmann pointed out that, in order to permanently stabilise the euro area, action and liability again must be aligned. This principle should apply not only to banks, but also for policy decisions in the euro area.

The European Central Bank has published technical details on the corporate sector purchase programme. Starting in June, six Eurosystem central banks, including the Deutsche Bundesbank, will execute the CSPP.

Low inflation rates defined the euro-area economy in the past two years. A recently published discussion paper by the Bundesbank's Research Centre investigates whether this has had any impact on important long-term inflation expectations.

Inflation in Germany has fluctuated strongly in the past eight years. The Bundesbank's economists have now examined the extent to which the Phillips curve model explains recent price developments. Import and energy prices have turned out to be particularly decisive.