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2025-07-31 17:01:21
The Eurozone Economic Mystery: What Does the Data Reveal about the "No Rate Cut"? (1) On July 31st, Beijing time, the latest data showed that the eurozone unemployment rate remained at a historic low at the end of the second quarter, confirming the economy's resilience. (2) The eurozone unemployment rate remained stable at 6.2% in June, unchanged from the revised May figure. Despite the uncertainty caused by higher import tariffs that took effect in early April and Trump's tariff rhetoric, the number of unemployed people fell by 62,000. (3) A strong labor market highlights the resilience of the eurozone economy, with economic growth of 0.1% in the second quarter, exceeding economists' previous expectations of a contraction. (4) Even though the German economy contracted, the German unemployment rate did not rise in July, suggesting a possible rebound in the early third quarter. (5) The eurozone's economic resilience increases the likelihood that the European Central Bank will maintain interest rates at 2%. (6) The ECB ended its seven-month streak of rate cuts this month, and ECB President Christine Lagarde stated that the ECB will not rush to cut rates even though inflation is expected to fall below its 2% target and is expected to average 1.6% next year.
