- The euro zone economy is expected to continue to recover in the coming quarters
- This follows growth in the first quarter, after five quarters of “stagnation.”
- The service sector is expanding, and manufacturing is showing signs of stabilization
- Price pressures are gradually diminishing
- However, wages are still rising at a high pace
- But forward-looking indicators suggest that wage growth will moderate during the year
- Inflation is expected to fluctuate around current levels this year
- Inflation is expected to fall towards the target in the second half of 2025
- Risks to growth are balanced in the near term but skewed to the downside in the medium term
The statements so far are a bit of a snoozer. It mainly deals with the details of the economic situation and their point of view on decision making today. Let's see if she mentions anything else about the next few months. Otherwise all we would get is just a major note. While that and higher inflation expectations may look hawkish overall, I still believe September is largely the next cut date barring any upside price data surprises.
This article was written by Justin Lu at www.forexlive.com.