Ultra-loose monetary policy is not only unwarranted given the healthy economy, today’s bank lending survey results also argue in favor of a normalization of monetary policy.
On the back of favorable conditions such as low interest rates and healthy economic growth, headway is being made in consolidating public-sector budgets in the eurozone.
Although inflation has retreated again from the 2% mark and is likely to remain mired at its current level, next week’s ECB meeting is not likely to be a complete “non-event”.
The eurozone economy continues to firm up. After a strong start to 2017, the latest sentiment surveys signal that the pace of growth will be maintained in the second quarter.
