ChainCatcher news, sources said that the growing disagreement among ECB policymakers on the outlook for economic growth may affect the debate on rate cuts in the coming months. Some are worried about a recession, while others are concerned about lingering inflationary pressures. As the eurozone economy enters a more unstable state, future policy decisions may be more complicated. At the heart of the debate is how weak economic growth and a potential recession will affect inflation - the ultimate focus of the central bank, which is trying to reduce inflation to 2% by the end of 2025.
Policy doves are still in the minority, and they believe that the economy is weaker than expected, the risk of recession is rising, and companies that previously hoarded labor are beginning to cut job vacancies, leading to a weak job market. Once the number of employed people decreases, disposable income will also decrease, which will quickly erode consumption and lead to a self-reinforcing economic recession. (Jinshi)