fxstreet.com 04 Feb, 2021 13:30 am

Good data, happy ECB

Good data, happy ECB
Over the past two weeks some key Eurozone economic data releases have been much better than expected, with the surprise indices having remained highly

Eurozone Harmonised Index of Consumer Prices (HICP) inflation rose strongly in January, with all of the big four countries surprising  with an uptick in the indicator.The most notable rise came from Germany, where inflation rose to 1.3pp, while core inflation rose to 1.However, those do present some risks to the consensus view that further monetary policy easing will be needed later this year and may instead lead the European Central Bank (ECB) down a wait-and-see path in 2021.

As mentioned earlier, ECB Executive Board member Schnabel said in an interview published on Sunday (with Deutschlandfunk) that the central bank is “expecting the inflation rate to pick up in the course of this year.3%, an upside surprise of 0.

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