EURCHF 12th JANUARY 2023
The market seems to be guiding wage increases, despite a possible slowdown in economic growth. The ECB has forecast wages to rise by 5.2% in 2023 after growing 4.5% in 2022. ECB Vice President Luis de Guindos expects wage increases will not lead to a wage-price spiral, but noted that the ECB needs to be cautious regarding inflation expectations. In the longer term, the ECB indicated wage growth will face further headwinds.
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