EUR: Positive growth outlook supports stability – BBH

Brown Brothers Harriman (BBH) analysts note that Eurozone Q4 real GDP growth has exceeded expectations, positioning the European Central Bank favorably. Analysts suggest that the ECB can maintain its current rates for some time.

Eurozone growth exceeds expectations

"Eurozone Q4 real GDP growth overshot expectations. Real GDP rose 0.3% q/q (consensus and ECB projection: 0.2%) vs. 0.3% in Q3."

"The ECB is in a good place to keep rates on hold for some time. The swaps curve price-in steady rates at 2.00% over the next twelve months and that’s unlikely to change much in the near term."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)