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Deutsche Weigh In Post PMI, A Pause Does Not Mean A Peak

ECB VIEW

Deutsche Bank write “the continuing sharp drop in the PMI data will test the ECB’s growth optimism. Ongoing manufacturing weakness might be more than just cyclical. It could reveal a more persistent and structural competitiveness shock. The weakening in services might reveal that monetary transmission is stronger than the hawks were expecting.”

  • “We are expecting the ECB to pause in September, but it is not clear that inflation is where the ECB wants it yet. A pause should not be misinterpreted as the peak.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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