Is the Eurozone in a deflationary grip? Will the ECB policies be able to pull it out?
April CPI growth in the Eurozone was up from March but remains well below the ECB’s target at 0.7% Y/Y, and below expectations of 0.8% Y/Y. Analysts believe that this latest data point is not conclusive enough for the ECB to start a QE-like asset-purchase program, but stagnant prices will keep real interest rates high and will continue to support the Euro relative to other currencies.
(Source: GBI, Bloomberg)
