Face possibility of new inflation shocks.Higher defence spending will contribute somewhat to inflation pressures.
He’s more on the hawkish side. The data out of Germany continues to point to better economic activity ahead and expectations remain high. Long term yields have also been rising steadily since the last ECB rate cut, which is not something you would see if there was a real risk of undershooting the target.
This article was written by Giuseppe Dellamotta at www.forexlive.com.