Summary

• The European Central Bank just released the results of its very own bank lending survey as well as the consumer expectations survey.
• In short, the results of both surveys suggest that stagflationary pressures in the eurozone have clearly increased.
• Even though the ECB’s primary policy goal is price stability, it’s hard to see that it would really want to fight an exogenous supply shock at the cost of worsening an economic downturn.

By Carsten Brzeski, Global Head of Macro

This morning’s ECB survey results suggest that stagflationary pressures have increased in the eurozone ahead of Thursday’s policy meeting

The European Central Bank just released the results of its very

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