ECB and Fed to delay rate cuts to sustain disinflation

The timing of the US/EU policy pivot to rate cuts is uncertain; rising euro-area expectations and wages raise concern

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In this article

  • Euro-area inflation expectations have risen
  • Diverging US/Euro-area demand momentum
  • US labour market uncertainties
  • High euro-area wage growth
  • Outlook for Euro-area/US unit labour costs

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