ECB Decision Looms as European Economy Grapples with Inflation and Slowdown
The European economy is grappling with a delicate balance between slowing growth and rising inflation. This Wednesday, September 9, two key events will shed light on the situation. At 8:45 AM Paris time, Insee will release its industrial production index for July, which has been in decline for three consecutive months.
The data shows that June's drop of 1.1% month-on-month, following a 1.0% decline in May, is likely to be mirrored in the latest figures. Despite this, manufacturers have expressed renewed optimism regarding future foreign demand in Insee's July survey.
Later that day, at 7:00 PM Berlin time, European Central Bank (ECB) President Christine Lagarde will attend an official dinner hosted by the Bundesbank, ahead of a crucial interest rate decision. The ECB is expected to increase its deposit rate by 25 basis points to 2.50% in response to Eurozone inflation rising from 2.9% to 3.3% year-on-year between July and August.