ECB and Euro Area Economy Monitor - 2024-07-17

The ECB leaves rates unchanged, following the first cut at the prior meeting. No change, really, in the Council's inflation outlook, except for this new and most bizarre theory of inflation: "the inflationary impact of high wage growth has been buffered by profits." One can only gasp when one imagines the discussion in the Council meeting when such baseless theories were bandied about in competition with each other to arrive at today's non-decision.