Despite the benefits of a weak euro and low oil prices, the latest hard data suggest that the upturn in the euro-zone economy has not gathered further momentum in Q2. This tentatively supports survey evidence pointing to yet another 0.4% quarterly expansion.
At this speed, the euro-zone recovery is vulnerable to economic shocks and remains at risk of stalling over the next few years. Accordingly, the ECB will need to keep its foot on the monetary policy throttle.
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