Spain Inflation at 5%, and the ECB is instead relieved
Once the September data came out, Germany, France, Italy, and Spain all beat expectations. Spain is at 5%, the highest since 2023; with energy prices rising at this pace, the euro area overall is set to head toward 4% by year-end.
As the script goes, with inflation this high, the central bank should be hopping to raise rates. But market expectations for an October rate hike are actually sliding lower.
The reason is simple: this round is driven by oil prices kicking things up, not by a broad-based increase in consumer prices. On top of that, global bond markets are being dumped, so yields are rising on their own—financial conditions have effectively tightened, meaning the market is adding a rate hike on behalf of the central bank.
Lagarde laid it out plainly: the selloff in bond markets is helping to push prices down.
#英国fca开放加密公司牌照申请
Once the September data came out, Germany, France, Italy, and Spain all beat expectations. Spain is at 5%, the highest since 2023; with energy prices rising at this pace, the euro area overall is set to head toward 4% by year-end.
As the script goes, with inflation this high, the central bank should be hopping to raise rates. But market expectations for an October rate hike are actually sliding lower.
The reason is simple: this round is driven by oil prices kicking things up, not by a broad-based increase in consumer prices. On top of that, global bond markets are being dumped, so yields are rising on their own—financial conditions have effectively tightened, meaning the market is adding a rate hike on behalf of the central bank.
Lagarde laid it out plainly: the selloff in bond markets is helping to push prices down.
#英国fca开放加密公司牌照申请