The European Central Bank sent a strong signal today that it is likely to raise interest rates in July or August. But the Bank’s inflation phobia clearly increases the risks of a sharp slowdown in the eurozone economy next year, implying that interest rates may eventually have to fall sharply.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services