Qatar National Bank sees limited Eurozone rate hikes
The National Bank of Qatar is inclined to believe that the Eurozone may see a reduction in the European Central Bank's need to further raise interest rates, as the risks of energy price shocks spilling over into inflation have begun to diminish and growth outlooks have deteriorated. The report explained that the interest rate hikes implemented by the bank in June could signify the end of the monetary tightening cycle, especially if no new inflation shock occurs or if core price pressures persist. It emphasized that the decline in inflation expectations and bond markets, along with weak economic growth, support the likelihood of no additional rate hikes for the rest of the year, while maintaining a flexible approach to economic data assessments by the European Central Bank.
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