On the surface, all seems calm. In Britain, inflation is a whisker below the official 2% target and, while in normal circumstances the Bank of England would be contemplating higher interest rates because of accelerating wage costs, the pressure to do so is not enormous. In the eurozone, growth has hit a soft patch, just after the European Central Bank (ECB) called a halt to its programme of quantitative easing (QE) and with inflation, at 1.4%, even lower than Britain’s 1.9%. However, the ECB can draw some comfort from the fact that some of the weakest growth is in Germany, largely because of the world trade slowdown, and Germany is normally in the vanguard of urging tighter rather than looser policy on Europe’s central bank.
Source: The Times April 20, 2019 23:00 UTC