Berenberg now expects the ECB deposit rate to reach 3% by mid-2029 (vs prev. view of 2028; vs the current 2.25%)
- Says a temporary US-Iran agreement lowering energy costs could push Eurozone inflation below 2% in early 2027, potentially delaying ECB tightening until end-2028
- Says that after that, demographic-driven labour-supply declines should lift wages and prompt renewed hiking
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