UBS On-Air: Market Moves
UBS On-Air: Paul Donovan Daily Audio 'The (dis) inflation cycle starts again'
29 Aug 2024
The cycle of European consumer price inflation data is about to start again (in reality, this is pretty much a perpetual cycle). The Spanish and German preliminary August numbers are due today. Both are expected to show a fairly sizable decline. That means, of course, that real interest rates are rising. The ECB should continue to chase inflation down, not to offer policy stimulus but to maintain policy stability.
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