ECB rate cut less likely as real wages rise

According to ChainCatcher, analysts believe that European economic growth is set to pick up and real wages are growing positively, making it less likely that the European Central Bank will cut interest rates in the coming months.

The European Central Bank attaches great importance to wages when deciding the degree and speed of easing policy, emphasizing that wages are a key factor in assessing the inflation outlook. Real wages in the euro zone have been growing for nearly a year.

The European Central Bank is expected to keep its main refinancing rate unchanged at 4.25% today, with prospects for a cumulative 45 basis points of rate cuts by the end of the year and nearly 100 basis points by June next year fading.