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This week, the European Central Bank made the first decisive move in the transition away from monetary tightening.
Recent strength in the Eurozone economy, including a higher-than-expected growth rate in hourly wages published today, suggests the lack of a pressing need to start cutting rates aggressively.
Recently, the Eurozone has been teetering on the edge between growth and recession, picking up slightly in the first quarter of this year after being negative for the fourth quarter of 2023.