The improvement in the Eurozone economic sentiment indicator for the third month in a row in June, fuels hope that the 16-nation economy passed the worst of the recession, but the strength of the economic recovery is still unknown, Commerzbank analyst Christoph Weil said.
The analyst said the European Central Bank will not respond to the rising sentiment indicators by quickly changing it's course.
"We believe the ECB will not start to hike the key interest rate until the fourth quarter of 2010. Scope for a continued hugely expansionary monetary policy is also given by the inflation rate in June, which has probably dipped into negative territory," Weil said.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.