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3 Jun 2014
All eyes on EMU’s inflation – Danske Bank
FXStreet (Edinburgh) - The most relevant data today in the euro bloc will be the release of the advanced inflation figures for the month of May, suggested Lars Christensen, Chief Analyst at Danske Bank.
Key Quotes
“The most interesting data release today is euro-zone inflation in May, which we expect will decline back to this cycle-low of 0.5% y/y from 0.7% y/y in April”.
“German, Italian and Spanish inflation declined in May and these figures even suggest downside risk to our forecast”.
“A lower inflation rate will increase the pressure on the ECB but the decision to ease seems to be more or less a done deal and we still expect the ECB to boost liquidity and introduce a negative deposit rate on Thursday”.
Key Quotes
“The most interesting data release today is euro-zone inflation in May, which we expect will decline back to this cycle-low of 0.5% y/y from 0.7% y/y in April”.
“German, Italian and Spanish inflation declined in May and these figures even suggest downside risk to our forecast”.
“A lower inflation rate will increase the pressure on the ECB but the decision to ease seems to be more or less a done deal and we still expect the ECB to boost liquidity and introduce a negative deposit rate on Thursday”.