Today’s stabilization in eurozone purchasing managers' indices (PMI) is reassuring after recent economic indicators for the region came in below expectations pointing to a marked deceleration in economic momentum.
Despite the continuing improvement on the labor market and increased wage dynamics, we do not see any inflation risks arising in the eurozone from the domestic side.
The current economic momentum in the euro area (new GDP data, EU Commission sentiment indicators) clearly shows in retrospective that the loose ECB monetary policy is having an effect.