A very high inflation peak in the eurozone will force the ECB to react – Natixis

In the opinion of analysts at Natixis, inflation is likely to peak higher in the eurozone than in the United States for four reasons. This will force the European Central Bank (ECB) to react.

The four causes of high inflation in the eurozone

“Given the deterioration in the terms of trade, the ECB’s slow reaction, the hiring difficulties and expansionary fiscal policy, inflation is likely to peak higher in the eurozone than in the United States.”

“This ought to lead to a more restrictive monetary policy in the eurozone than in the United States, which is not at all priced in at present.”