Data released this week showed that euro-zone services inflation fell in April for the first time in five months. We think that the continued pass-through of lower energy costs and slower wage growth will mean that it keeps falling over the rest of the year, allowing the ECB to cut interest rates more quickly than is discounted in the market. Next week, we expect the Riksbank to begin its easing cycle with a 25bp rate cut.
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