Danske Daily - 20 March 2017

Published 03/20/2017, 03:17 AM
Updated 05/14/2017, 06:45 AM

It is a very quiet day in terms of major economic data releases.

In the euro area, wage growth for Q4 16 is due out. Wage growth has been subdued in recent years despite a continuously falling unemployment rate. Wage growth figure is important in explaining core inflation and the low wage growth is one of the main reasons core inflation also remains subdued. While the ECB predicts sharply rising wage growth and core inflation in coming years, we believe that ECB is too optimistic and we expect the wage growth figures for Q4 will be broadly unchanged from Q3. See ECB's core inflation forecast is still too optimistic , 14 March 2017.

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