The International Monetary Fund said the euro area’s economic recovery “has gained momentum” while it warned that some of the region’s high-debt countries may face difficulties when monetary policy accommodation is reduced.
“The euro area recovery is strengthening and becoming more broad-based,” the IMF said in a statement Thursday following its regular consultations with the 19-nation region. “There should be a renewed commitment to completing the banking union, advancing the capital markets union and creating a common fiscal capacity.”
Still, the Washington-based fund cautioned that “inflation expectations, however, remain subdued, with core inflation at undesirably low levels.” It said countries already operating at capacity should accept inflation above 2 percent “for a prolonged period.”
USD/CAD Canadian Dollar Lower as USD Stronger After Fed Hike
BOJ Falling Behind Other Central Banks
GBP/USD – Pound Quiet as BoE Holds Course on Rates
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Craig Erlam
Latest posts by Craig Erlam (see all)
- Earnings dampening the mood - 25 January 2023
- Choppy trading - 24 January 2023
- A big week of earnings - 23 January 2023