Weekly Market Recap

31 October 2022

ECB Tightening Into Recession

  • Rising ECB hiked rates for third time in a row.
  • With high inflationary pressures, tighter credit conditions and a robust labor market, ECB painted a more pessimistic economic outlook, with downside risks to growth and upside risks to inflation.
  • ECB is concerned about a likely excessive wage increases, which could result in a wage-price spiral.

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