Inflation data for the 20-country eurozone is expected to be announced tomorrow, Thursday, and economists expect inflation to slow to 8.3% from 8.6%, while core inflation, which has been of interest to European Central officials recently and excludes volatile energy and food costs, is likely to remain at a record level. It is 5.3%.
When does the monetary tightening cycle end?
Germany’s central bank chief, Joachim Nagel, told reporters in Frankfurt earlier on Wednesday that underlying price pressures remain very high, and that inflation is likely to decline only gradually to a rate of between 6% and 7% in Germany in 2023.
Morgan Stanley: The eurozone economy can withstand more rate hikes
Nagel added in a speech: “One thing is clear.. The rate hike in March will not be the last.. It may also be necessary to take more important interest rate steps after that.”
While Nagel declined to predict when the tightening cycle might end, his French counterpart François Villeroi de Gallau said in Paris that it was “desirable” for the ECB to reach peak rates by September 2023.
