In contrast to the past few years, when the risks to the euro-zone inflation outlook have been consistently skewed to the upside, those risks now look more balanced. So in this Focus, we explore the downside risks and how the ECB might respond to them. The key point is that even if inflation falls faster and further than we expect, the Bank might not start cutting interest rates sooner than we are forecasting.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.