growth

Central banks have gone to great lengths over the past two years to rein in inflation and reiterate their commitment to achieving price stability.

There are some positive signals in 2023 Q3 GDP today, together with September economic indicators, suggesting the economy might pass the worst amid policy support.

In the first quarter of the year, 423K jobs were created, the best result since 1998, representing a growth of 9.8% QoQ. In March, 136K were created, which is equivalent to a monthly growth of 0.6%, higher than that of the last two years for a similar month (0.4% in 2021 and 0.3% in 2022).

Following a series of more aggressive 75 bp hikes at previous meetings, last week the ECB raised interest rates by just 50 bp, following in the footsteps the Federal Reserve and the Bank of England. In doing so, it is trying to strike the right balance, which is always difficult in times of stagflation as the current one.