(Ouch!)
#ECB – markets price rate hike in Sept, and 2x through July, chart @bloomberg.com TV live white line: 2y #German Govt bond yield:
3.0048% and blue line: ECB deposit rate: 2.25%.
Energy shock → higher production/transport costs → higher price level + lower real income → weaker demand/output. #ECB's own September 1 analysis is unusually explicit. It says that "the energy supply shock dominates, while demand and public policy stimulus have minor roles."
