Central Banks

Euro-Zone Wage Growth Slows, Boosts Case for Another ECB Cut

  • Negotiated pay rose 3.6% from a year ago in second quarter
  • Wages, profits and productivity are key for ECB rate policy
The headquarters of the European Central Bank in Frankfurt.Photographer: Kirill Kudryavtsev/AFP/Getty Images
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A key gauge of euro-zone wages eased — reinforcing the case for the European Central Bank to continue lowering interest rates next month.

Second-quarter negotiated pay rose 3.6% from a year ago, the ECB said Thursday. That’s down from 4.7% in the previous three months and broadly in line with estimates from Bloomberg Economics, as well as analysts at Morgan Stanley and Citi.