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Europe Chart Pack (May 2024)

The latest data are consistent with our view that the euro-zone will grow only slowly in the coming quarters. With the labour market softening and inflation continuing to fall, the ECB has signalled that it is likely to start cutting rates in June. We have penciled in a further four 25bp of rate cuts for the second half of the year. Elsewhere, the SNB and the Riksbank have started loosening policy, but Norges Bank will probably only follow suit in December.

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