Mixed Results for Euro Zone and German Economies in Q1

The euro zone economy grew by 0.1% in Q1 2008, missing expectations of 0.2%, while Germany's GDP flatlined over the period. The economy expanded by 1.3% on an annual basis, just under expectations of 1.4%. The figures will be watched ahead of the May 4 meeting of the European Central Bank, which seeks to tackle headline inflation of 6.9% and core inflation at a record high of 5.7%. Some ECB policymakers have stressed they believe they have further to go on interest rate rises as they weigh up a 25 basis point or even 50 basis point hike next week.