Euro Zone Inflation to Remain “Too High for Too Long”

Global inflation remains persistently high, causing concerns for central banks worldwide. Delgado, a prominent figure at the European Central Bank (ECB), highlighted that despite inflation’s decline, it remains worryingly elevated. Recent rate hikes, meant to counteract soaring inflation, have significantly tightened financing conditions, suppressing demand. As central bankers worldwide meet, the focus is on whether interest rates need to be maintained longer than anticipated. After a historic rise in inflation, the ECB has rapidly increased rates, but there’s growing skepticism about its effectiveness, evidenced by J.P.Morgan’s prediction of a halt in the ECB’s tightening cycle after disappointing euro zone business activity results.