EZA 647: Data-update : ECB Council Preview December 2004

02 December 2004

Latest data confirms EZA view : balance shifts away from inflation worries; rates likely on hold to late 2005
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SummaryLast minute data reinforce EZA assessment that balance of risks has shifted away from inflation Inflation falls back, GDP growth slows, net exports plummet and domestic demand sustained more by stockbuilding and government consumption than by investment and consumer spending Conclusion: no rate rises foreseen for many months, no cut expected given need to keep (limited) powder dry against fears of US$ crash or Eurozone recession

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© Graham Bishop