Euro zone lending continued to stagnate in March and consumers trimmed their inflation expectations as record-high borrowing costs kept putting the brakes on the euro zone's economy, European Central Bank (ECB) reports showed today.
Euro zone lending continued to stagnate in March and consumers trimmed their inflation expectations as record-high borrowing costs kept putting the brakes on the euro zone's economy, European Central Bank reports showed today.
"Today's data is in line with a start to cautious rate cuts," Bert Colijn, senior economist for the euro zone at ING, said. In a sign that the ECB's bitter medicine was working, an ECB survey showed consumers in March cut their inflation expectations for the following 12 months to their lowest since December 2021 at 3.0%.
"From now on, we must weigh the risk of monetary policy becoming too tight," ECB policymaker Fabio Panetta said last night."A tight monetary stance could increase the risk of a protracted period of economic weakness."
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