The unexpected contraction in the euro area economy during the third quarter as well as inflation slowing to a more than two-year low in November reflects the impact of the aggressive monetary policy tightening stance adopted by the European Central Bank so far but the stage is still not set for a rate cut as inflation is forecast to stay "higher for longer".
Gross domestic product registered a quarterly contraction of 0.1 percent in the third quarter, in contrast to the 0.2 percent expansion in the second quarter, Eurostat said in its preliminary flash estimate, released Tuesday.
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by Renju Jaya
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