Eurozone weekly economic briefing | Strong eurozone economy faces winter headwinds
Monthly data continues to show a gradual but persistent slowdown in economic activity moving deeper into Q4. While we still expect the eurozone economy to experience above-average growth over the coming quarters, it is clear that growth rates have already peaked.
What you will learn:
- The sharp rise in inflation and the persistent issues with global supply chains continue to add downside risks to the outlook, prompting a small revision to our forecasts.
- With the strong rise in inflation prompting market expectations to signal a rate hike as early as next year, ECB president Christine Lagarde has pushed back on this possibility, arguing that the forward guidance is clear as to what conditions will be required for the ECB to start raising rates.
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