On February 13, according to economists’ forecasts, although inflation in the euro zone has slowed down, it is expected to remain slightly above the European Central Bank‘s 2% target in 2025. The core inflation rate, which is currently a data of particular concern to the ECB, is expected to peak at 5.2% in the first quarter of 2023 before falling back to 3.6% in the fourth quarter of this year, the survey showed.
Economists expect Germany to be the only one of the euro zone’s four largest economies to contract this year, while Spain is expected to expand at the fastest pace on record. Economists said the ECB was still expected to raise its key policy rate to a peak of 3.25% from the current 2.5%. The first rate cut is expected in the second quarter of 2024.
