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As the European Central Bank prepares for its next key interest rate decision, a drop in wholesale prices from Germany provides a glimmer of relief. In August, the biggest economy in the Eurozone saw wholesale prices fall by 0.8%, a significant shift from the 0.3% rise in July. This downward trend comes at a crucial time, as both businesses and banks are clamoring for easier credit conditions. The latest data may influence the ECB's move, which is expected to lean towards further rate cuts.
Yes, it seems like a relief but the real relief would be when the industries return to Germany, which I don't see for the reason we have discussed earlier. However, it surely is a major relief if it's not government orchestrated data to mislead the people of Germany.
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The rate drop is good, right? It will help issuing more credit. Debt is good! lol
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