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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