Reported 4 months ago
Strong economic data and vocal European Central Bank hawks are causing some analysts and investors to reconsider their expectations for interest-rate cuts, as sticky inflation, wage growth, and robust euro-zone output may constrain monetary easing. While a rate cut is still expected this month, with subsequent reductions anticipated, concerns remain about cutting too aggressively due to signs of economic resilience, inflation pressures, and uncertainty influenced by US factors. Both economists and markets are adjusting their forecasts, with some predicting fewer cuts and a more cautious approach for the rest of the year.
Source: YAHOO