The impact of a rise in German value-added tax (VAT) on the euro zone economy has not been as large as expected, European Central Bank (ECB) governing council member Klaus Liebscher said today.
Mr Liebscher said ECB rates of 3.75 per cent were moderate and monetary policy remained on the accommodative side, repeating key phrases from the last ECB monetary policy statement.
On the rise in German VAT, he said: "The impacts were not as big as . . . [they were] supposed to be. But let's wait and see a little bit.
"Economic developments look positive, growth is robust," he added.
