FXstreet.com (Barcelona) - Data released by Eurostat in the European morning on Monday points to another increase in the area's unemployment rate, from 11.0% seen in April to 11.1% in May, a new euro-area high.
According to Martin van Vliet from ING, we will probably see further increases in the indicator in the coming months as the “employment expectations indices from the European Commission’s business survey have generally worsened sharply in recent months.” The expert suggests that the indicator might peak at 11.5% or even 12%.
He also believes that “today’s grim unemployment figures provide a sober reminder that the Eurozone economy is still in desperate need of a more expansionary policy stance,” and predicts that the ECB will proceed with “25bp cut in the main refi rate and a smaller (or no) cut in the deposit rate” at the monetary policy meeting on Thursday.
According to Martin van Vliet from ING, we will probably see further increases in the indicator in the coming months as the “employment expectations indices from the European Commission’s business survey have generally worsened sharply in recent months.” The expert suggests that the indicator might peak at 11.5% or even 12%.
He also believes that “today’s grim unemployment figures provide a sober reminder that the Eurozone economy is still in desperate need of a more expansionary policy stance,” and predicts that the ECB will proceed with “25bp cut in the main refi rate and a smaller (or no) cut in the deposit rate” at the monetary policy meeting on Thursday.
