Inflation expected to hit ECB’s target in 2025.Eurozone economy will grow slowly and recover gradually.Salary and services inflation remain persistent, maintain risk of inflation moderating more slowly than expected.If fresh statistics and forecast support current inflation and growth view, ECB should continue to cut rates.Downward direction of rates is clear and the pace depends on the data.We can cut in December if data and forecasts back it.My assessment is that we are moving towards neutral rates from restrictive rates.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
