ECB Tackles Eurozone Rate Risks Amid Pessimistic Consumers
The eurozone economic outlook is influenced by inflation and confidence data releases, but they are not the primary drivers of interest rates at the moment.
According to Michiel Tukker and Benjamin Schroeder, second-round inflation effects take time to materialize in the data.
The European Central Bank (ECB) views higher long-term interest rates as a growth headwind and remains committed to a 'measured response'.