Eurozone rates to remain higher for longer than markets anticipate – Nataxis
Nataxis research is out with a note detailing how long-running supply and demand imbalances in the Eurozone are going to keep rates higher for longer than most markets are currently expecting.
The state of supply and demand for goods and services in the eurozone
In the recent period (since the start of 2023), insufficient demand has been cited more as a factor limiting the eurozone's industrial production. But if we look at services, construction and the eurozone economy as a whole, it is still massively in a situation of excess deman for goods services, and labour, with insufficient supply.
Restrictive monetary policy has not yet caused the eurozone to return to a situation of excess supply of goods and services.
As long as the eurozone is in a state of excess demand for goods and services, inflation will be higher than financial markets expect.
Reprinted from FXStreet_id，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.