Eurozone | Improved outlook, still subdued inflation

Our MICA-BBVA model suggests a steady growth pace in 4Q (0.6%/0.7% QoQ), so far supported by very strong confidence, with more mixed signals from hard data. Positive incoming data, mostly from Germany, pose an upward bias to our growth outlook. Both headline and core inflation eased and remain subdued in October, while our forecasts continue at 1.5% and 1.2% for 2017-18.

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