The euro has gained some strength against the pound and is steady against the dollar this morning.
Eurozone inflation rose 0.4% in December and the annual inflation rate came in at a record high of 5%, as expected. This was largely a result of surging energy prices which rose 25.9%.
Minutes from the European Central Bank’s latest meeting have been released. Policymakers acknowledged that it is possible that inflation could remain high for longer than first anticipated. Nonetheless, in a radio interview yesterday, President of the ECB Christine Lagarde defended not raising interest rates despite record inflation, warning that such a move could put the “brakes on growth”.
Later today, Lagarde will speak again and figures for eurozone consumer confidence will be released.
