A brighter European outlook - Nomura
|In its latest monthly global economic outlook report, the research team at Nomura noted that they have above consensus on euro area growth.
Key Points:
We see growth of 1.8% this year (above consensus) falling to 1.5% in 2018 and 2019 as Brexit materialises.
Inflation is set to rise thanks to sterling’s depreciation, though we think the spike will be short-lived.
As such, the Bank of England should look through rising inflation and leave rates (and QE) on hold until H2 2019.
We are relatively optimistic on the Eurozone outlook and expect further positive data surprises.
On monetary policy, we expect the ECB to announce a tapering programme in H2 2017 to commence in early 2018.
We do not believe a large political shock will emerge this year that would destabilise Europe’s economies.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.