Nomura: Eurozone Wage Pressures to Delay ECB Rate Hikes

Nomura's Global Markets Research team anticipates persistent wage pressures across the Euro area. These ongoing pressures are projected to keep inflation risks elevated well into 2027-2028. Consequently, the firm suggests that the European Central Bank (ECB) may implement interest rate hikes later than previously expected. This outlook implies a less aggressive tightening path for the ECB, which could prolong inflation challenges. Such a scenario is generally considered bearish for the Euro, potentially impacting its value against major currencies like the US Dollar and affecting Eurozone government bond yields.