The German Bundesbank cut its inflation forecasts on Monday. The central bank expects inflation in Germany to be 0.25% in 2016, down from its previous forecast of 1.1%, and 1.75% in 2017, down from its previous forecast of 2.0%. The downward revision was driven by a drop in oil prices.

The Bundesbank also said that the economic growth in Germany would accelerate in the first quarter of 2016 due to a rise in consumption and construction activity.