Eurozone: Inflation is moving up but growth deterioration may delay ECB next steps - Danske Bank
|Analysts at Danske Bank, remain somewhat
Key Quotes:
“We remain somewhat
“While ECB is more confident on the inflation dynamics, we also take note of the more downbeat assessment on the growth outlook, in particular in light of the recent protectionism/trade war risks. In a recent interview, Chief Economist Peter Praet indicated that the end of the APP by the end of the year is not a firm decision but subject to incoming data. The ECB’s ‘anticipation’ of ending QE could be derailed if data deteriorates markedly. We would expect the ECB to change stance should the growth outlook turn significantly sour from its 2.1% expected growth this year, to somewhat below the potential growth (estimated by EC around 1.5%).”
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