On February 5th, Jin Ten Data reported that Irene Lauro, Senior Economist for Schroder Investment in Europe and Climate, stated that economic growth in the Eurozone continues to exceed expectations. As low interest rates and fiscal support gradually permeate the economy, internal demand in the Eurozone is gaining momentum. Overall inflation has fallen below target levels, but given the volatility of energy prices, the European Central Bank will largely ignore this. Instead, policymakers will continue to focus on service sector inflation, which remains at disturbingly high levels, and it is expected that the end of wage growth slowdown this year will exacerbate this phenomenon. Today's decision by the European Central Bank confirms our view that the next step for the ECB will be to raise interest rates rather than cut them.

From Jin10 Data