<figure><img src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iUHYVFfOmvc0/v5/-1x-1.jpg"><figcaption><div><p>Source: Bloomberg, 4:41</p></div><div></div></figcaption></figure><p>The record hikes the ECB has carried out over the past 13 months don&#x2019;t seem to have much impact on the economy yet. According to fresh research from Bloomberg Economics using its SHOK model, those interest rate increases could trim 4% from the euro zone&#x2019;s economy by the middle of next year. Bloomberg&#x2019;s economics editor Zoe Schneeweiss explains why it&#x2019;s taking so long for rate hikes to be felt and what&#x2019;s damping the pain of those increases in borrowing costs. Schneeweiss spoke with hosts Caroline Hepker and Stephen Carroll on Bloomberg Radio.</p>

The record hikes the ECB has carried out over the past 13 months don’t seem to have much impact on the economy yet. According to fresh research from Bloomberg Economics using its SHOK model, those interest rate increases could trim 4% from the euro zone’s economy by the middle of next year. Bloomberg’s economics editor Zoe Schneeweiss explains why it’s taking so long for rate hikes to be felt and what’s damping the pain of those increases in borrowing costs. Schneeweiss spoke with hosts Caroline Hepker and Stephen Carroll on Bloomberg Radio. 

The Euro’s Masters Have Set the Economy for a Painful Reckoning (Audio)

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