Central Banks
ECB Rate-Cut Expectations Start to Unravel Before First Move
- Strong wage growth risks slowing return of inflation to 2%
- Governing Council to lower rates by quarter-point on Thursday
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Strong economic data and vocal European Central Bank hawks are pushing some analysts and investors to waver in their expectations for interest-rate cuts this year.
While most economists still foresee quarterly reductions following this week’s initial move, some reckon sticky inflation, rapid wage growth and surprisingly robust euro-zone output will constrain monetary loosening.