Ifo's Nerb says German economy not bottomed

FRANKFURT (Reuters) - Germany's economy has not yet bottomed out, an economist at the country's Ifo institute said on Wednesday after German corporate sentiment deteriorated in March to its lowest level since reunification in 1990.

"The current situation is still deteriorating, showing that the lower turning point has not yet been reached," Ifo's Gernot Nerb said in an interview on Bloomberg Television.

"Expectations are signalling that we will probably relatively soon reach the lower turning point."

The German stimulus package will show positive impact to the economy starting from the third quarter, he added.

He also said he expected the ECB to cut by 50 basis points in its April 2 meeting, although he would prefer more.

"We expect the ECB will cut rates next week," Nerb said. When asked whether he expected a 50 basis point cut, he said: "This is the minimum."

(Reporting by Sakari Suoninen and Krista Hughes)