That combination, slowing growth alongside persistent inflation, significantly complicates the outlook for policymakers. Cardillo noted that expectations of rate cuts may need to be recalibrated. “That just changes the prospects in terms of any rate cuts on a global basis,” he explained, adding that the European Central Bank could soon turn more hawkish. “It’s very possible that when the ECB meets next week, they are likely to change their policy statement by indicating a rate hike.”
