The Paris Olympics created a positive momentum for Euro Zone activity in August. It boosted private sector growth to its fastest pace over the last 3 months as shown by S&P Global’s Composite PM index to 51.2 compared to the 50.2 in July. (Read more here)

However, this positive effect could be only short-lived.

All eyes will be on the European Central Bank (ECB) on the 12^th of September as it is the next rate decision. The ECB started off a cycle of rate cuts in June 2024 and it is largely anticipated that it will continue its dovish monetary policy with another rate cut. Given the persistency of weak symptoms, it might be a natural step to take for the ECB. There are noises about 25bps cut in the deposit rate with another cut before the end of the year.

Follow this space to know more.

Here: [https://finance.yahoo.com/news/euro-zone-economy-handed-surprise-080538975.html]

25 bps…: [https://www.reuters.com/markets/europe/ecb-may-need-cut-rates-again-sept-rehn-says-2024-08-19/]