The pick-up in euro-zone wage growth in Q2 adds to signs that inflationary pressures in the region are building. This will encourage the ECB that it is right to be normalising monetary policy. But with wage growth and core inflation set to rise only gradually next year, the Bank looks set to wait until next September before raising interest rates.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services