ADVERTISEMENT

Rise in inflation not to weaken euro area economy: UBS

Analysis

The rise in inflation in the eurozone will not weaken its economy or threaten the stock market growth, financial company UBS stated, the Warsaw Business Journal reports, citing the PAP news agency. 

According to UBS experts, the inflationary pressure is not widespread, and besides, the upward pressure is unlikely. The bank's experts also pointed out that the ECB signaled that it would not tighten its policy in response to the temporary rise in prices.

"We believe that while ECB critics may find additional ammunition in the recent spike in headline inflation, we see good arguments in favor of the ECB sticking to a loose monetary policy. Against this background, we recommend investors position themselves in reflective trading, where energy and finance are our most favored sectors," Mark Haefele, director of investments, UBS Global Wealth Management, commented. 

According to the latest data, inflation in the eurozone in May rose to 2% from 1.6% in April. 

ADVERTISEMENT

Regional income disparities remain pronounced Analysis

Regional income disparities remain pronounced

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

Capital sees urban exodus during pandemic City

Capital sees urban exodus during pandemic

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.