Sentiment at 19.9 vs forecast 17.5
Seventh rise in a row
Current situation more pessimistic

BERLIN, Feb 13 Reuters German investor morale improved more than expected in February on hopes of interest rate cuts, despite a dire assessment of current conditions, the ZEW economic research institute said on Tuesday.

The institute reported a rise in its economic sentiment index to 19.9 points from 15.2 points in January.

The February increase, the seventh in a row, beat expectations of analysts polled by Reuters of a reading of 17.5.

According to ZEW president Achim Wambach, over twothirds of respondents expect the European Central Bank to make interest rate cuts in the coming six months, and nearly threequarters are anticipating imminent rate cuts by the U.S. central bank.

Looming interest rate cuts seem to have a doping effect on investors, said Hauck Aufhaeuser Lampe private bank chief economist Alexander Krueger.

Financial markets, however, have been scaling back their bets on rate cuts from the biggest central banks in recent weeks as inflationary pressures linger and U.S. economic data remains mostly strong.

Despite the pickup in German investor confidence, the assessment of the economic situation indicated that the German economy is in a bad place, said Wambach.

That assessment fell more than expected, to 81.7 points in February from 77.3 points the month before.

Analysts had expected a reading of 79.0 points. According to Wambach, it was the lowest reading…