According to a key European Central Bank survey released on Monday, the eurozone will avert a recession this year, and growth will improve considerably after petering out in the second quarter.
The effect from Russia's invasion of Ukraine has harmed the 19-country currency bloc, reducing confidence, investment, and household purchasing power through dramatically increased fuel and food costs.
According to the ECB's Survey of Monetary Analysts, the economy is now anticipated to grow by 0.1 per cent in the second quarter, before accelerating to 0.4 per cent in both the third and fourth quarters.
The survey, which is a significant input in ECB policy discussions, also anticipated that the ECB will hike its deposit rate by 75 basis points this year and 150 basis points by the end of next year, with the rate peaking at 1.25 percent in mid-2024.
The survey, which was given to officials at the ECB meeting last week, was conducted before the ECB announced that rates will rise by 25 basis points in July and possibly by a larger margin in September.
The rate hike comes as the ECB works to keep inflation under control, which is expected to return to the 2% target by the first quarter of 2024, according to the survey.
(Source:www.theglobeandmail.com)
The effect from Russia's invasion of Ukraine has harmed the 19-country currency bloc, reducing confidence, investment, and household purchasing power through dramatically increased fuel and food costs.
According to the ECB's Survey of Monetary Analysts, the economy is now anticipated to grow by 0.1 per cent in the second quarter, before accelerating to 0.4 per cent in both the third and fourth quarters.
The survey, which is a significant input in ECB policy discussions, also anticipated that the ECB will hike its deposit rate by 75 basis points this year and 150 basis points by the end of next year, with the rate peaking at 1.25 percent in mid-2024.
The survey, which was given to officials at the ECB meeting last week, was conducted before the ECB announced that rates will rise by 25 basis points in July and possibly by a larger margin in September.
The rate hike comes as the ECB works to keep inflation under control, which is expected to return to the 2% target by the first quarter of 2024, according to the survey.
(Source:www.theglobeandmail.com)
