Inflation in the Euro area delayed more in February than expected, increasing justifications for the continuation of the European Central Bank to lower interest rates. Consumer prices rose 2.3% year -on -year, less than 2.4% referred to by the initial “Eurostat” report. This amendment comes after the unexpected decline in inflation in Germany. In light of the ambiguity around the expectations of economic growth and inflation in Europe, the European central officials, who discuss whether they will stop or lower borrowing costs next month, focus on the clear progress in reaching the target of 2%. Other positive indicators emerged as the growth of wages delayed, inflation expectations remained stable, and the increase in service prices began to decline. The risks of high inflation are back in Europe, but there are also the risks of high inflation, as trade tensions at the United States, high defense spending and infrastructure costs can lead to an increase in prices at an accelerated rate. The ‘European Central’ has already postponed the schedule to achieve the purpose of inflation until the beginning of next year; His president, Christine Lagarde, emphasized that political manufacturers are ‘very vigilant’, and to be flexible when dealing with new information. The economists of the “Bloomberg” recording still expect two additional reduction in interest rates, the first in April and the second in June, before the interest rate on deposits stabilized at 2%. As for the markets, their expectations appear to be divided on the decision next month, but they tend to expect two actions in general before the end of the year.
An unexpected slowdown in Europe amid the ‘central’ frequency of interest
