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The European Central Bank’s July monetary policy meetings tend to be uneventful, and this year proved no exception.
Given the ECB’s reaction function, we expect the ECB to continue lowering rates at staff projection meetings and therefore anticipate the next cut in September.
Eurozone employment has grown despite slowing GDP growth, rising by 2.6 million people since the end of 2022, with the unemployment rate at a historic 6.4% low.
While the European Central Bank kept policy rates unchanged, the next cut is likely to be delivered soon. ...