Germany's central bank says the country's economy, Europe's largest, should continue to grow in the third quarter despite Britain's decision to leave the European Union.

The Bundesbank said in its monthly report Monday that a robust labor market, higher wages and the European Central Bank's loose monetary policy should help the country offset the possible adverse effects stemming from Britain's vote to leave the EU, so-called Brexit.

It says "the underlying economic trend is still quite strong, and a significant increase in economic output can be expected for the summer quarter."

It added that while the effects of the upcoming British departure were difficult to estimate, it "could remain limited, at least in the short-term."