BERLIN, Sept 29 (Reuters) - Leading economic institutes on Thursday urged the European Central Bank to wait and weigh the effects of its bond-buying programme before taking more expansionary steps.
They added that the majority of institutes believe the ECB should take more measures to stimulate the euro zone economy if inflationary pressures remain weak.
"Should the price pressures and capacity utilization in the euro zone fail to rise noticeably, most of the institutes believe that an extension of the expansive monetary policy is reasonable," they wrote.
The institutes, whose report is published twice a year and feeds into the German government's own assessments of the economy, also called on Germany to focus its fiscal policy on investments that boost growth rather than increase spending that fuels consumption, such as welfare handouts for refugees.
The institutes also raised their growth forecast for this year to 1.9 percent from 1.6 percent earlier this year and lowered their 2017 GDP growth forecast to 1.4 percent from 1.5 percent. (Reporting by Joseph Nasr and Michael Nienaber; Editing by Madeline Chambers)