ECB: Wage growth in next few quarters to be “very strong”
In its Economic Bulletin article published on Monday, the European Central Bank (ECB) noted that the wage growth in the next few quarters to be "very strong" but real wages will fall further in the coming months.
Additional takeaways
"Wage growth over the next few quarters is expected to be very strong compared with historical patterns."
"This reflects robust labor markets that so far have not been substantially affected by the slowing of the economy, increases in national minimum wages and some catch-up between wages and high rates of inflation."
“But the expected economic slowdown and uncertainty about the outlook are likely to put downward pressure on wage growth beyond the near term.”
Market reaction
EUR/USD keeps its range below 1.0700 on the release of the ECB Bulletin, trading 0.35% higher on the day at 1.0680, as of writing.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
