--Ifo cuts German 2001 growth forecast to 1.2% from 2.1%
--Ifo cuts euro-zone 2001 growth forecast to 1.9% from 2.6%
--Ifo raises German 2001 inflation forecast to 2-3/4% from 2.1%
--Ifo raises euro-zone '01 inflation forecast to 2.9% from 2.3%
--Ifo sees one more small ECB interest rate cut this year
--Ifo: Germany to miss below-3.5 mln-jobless goal by fall '02

Frankfurt, June 26 (BridgeNews) - The influential German Ifo institute said Tuesday it had cut its economic growth forecasts for Germany and the euro zone, and raised its inflation forecasts. Real German gross domestic product growth is seen reaching just 1.2% this year compared with 2.1% forecast in April, while euro-zone GDP is seen growing by 1.9% compared with previous 2.6%. Ifo said it expects the ECB to cut interest rates slightly one more time this year.
"The German economy at the moment has not yet reached the low point," Ifo said in its latest economic forecasts. Germany and the euro zone should experience a moderate acceleration of economic activity in the second half of this year.