ECB Wage Tracker Points to Modest Uptick in Negotiated Wage Growth
The European Central Bank's wage tracker has indicated a modest uptick in negotiated wage growth, reaching 2.7% in the first half of 2027.
This development is significant, as it suggests that labor markets are experiencing some degree of tightening, which could potentially lead to higher inflation and interest rates.
In other economic news, Canada's economy is expected to enter a new phase of growth, driven by gains in productivity and efficiency, as well as increases in capital deployment. The country's potential growth rate is forecasted to rise from 1.5% currently to 1.7% by the end of this decade.
The Bank of Japan is also expected to raise interest rates to 1.25% at the end of its two-day meeting on Friday, amid inflationary pressures, according to a CNBC survey.