Source: ECB policymakers have different views on the economy, doves are still in the minority
Insiders say that the divergence among European Central Bank decision-makers on the economic growth outlook may affect the interest rate cut debate in the coming months. Some are concerned about economic recession, while others are focused on persistent inflationary pressures. As the eurozone economy enters a more unstable state, future policy decisions may become more complex. The core of the debate is how weak economic growth and potential economic recession will affect inflation - the central bank's ultimate concern as it seeks to reduce inflation to 2% by the end of 2025.
Policy doves are still in the minority, believing that the economy is weaker than expected and that the risk of recession is increasing. Companies that previously hoarded labor are now beginning to cut job vacancies, leading to a weak job market. Once the number of employed people decreases, disposable income will also decline, quickly eroding consumption and leading to a self-reinforcing economic recession. (Jinshi)
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