Sources: European Central Bank policymakers have differing economic views, with doves remaining in the minority

ChainCatcher news, sources say that the divergence among European Central Bank policymakers regarding the economic growth outlook is increasing, which may impact the interest rate cut debate in the coming months. Some are concerned about a recession, while others focus on persistent inflationary pressures. As the Eurozone economy enters a more unstable state, future policy decisions may become more complex. The crux of the debate lies in how weak economic growth and the potential for recession will affect inflation—this is the ultimate concern of the central bank, which aims to reduce the inflation rate to 2% by the end of 2025.

Dovish policymakers remain in the minority, believing that the economy is weaker than expected, and the risk of recession is rising, as companies that previously hoarded labor begin to cut job vacancies, leading to a weak labor market. Once employment numbers decline, disposable income will also decrease, quickly eroding consumption and leading to a self-reinforcing economic recession. (Jin Shi)