The latest evidence suggests that the euro-zone economy remains fairly resilient in the face of the Iran war and that, despite elevated energy prices, underlying price and wage pressures have not increased. Against that backdrop, the ECB Governing Council is likely to leave its deposit rate at 2.5% next week and hike just once more in this cycle, in December. This is a lot less tightening than is priced in by financial markets.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.