- 12 June 2026
Can the Eurozone tolerate higher rates for long?
- PROFESSIONAL INVESTORS
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- 15.06.26
For wealth managers & IFAs, AllianceBernstein's latest analysis challenges the market's assumption that eurozone interest rates will remain elevated for years. Sandra Rhouma, a fixed income economist, argues that while recent energy-price shocks have prompted ECB tightening, today's backdrop is far less inflationary than during the Ukraine crisis. Wage pressures are easing, growth remains fragile and fiscal support is constrained, suggesting the euro-area economy may struggle to absorb restrictive rates for an extended period. AB believes markets may be overestimating the durability of higher rates and that cuts could be needed as inflation normalises.






