Better-than-expected economic growth in Spain and France puts interest rate cuts under fire

France’s gross domestic product grew by 0.3% from May to June. Spain’s economy grew by 0.8%. Against the background of these numbers, officials are eagerly awaiting euro zone inflation figures to be released on Wednesday. Economists forecast that the price increase in the euro area will remain at the level of 2.5% in July, which is significantly higher than the ECB’s 2% target. Moving towards the latter is, among other things, the main prerequisite for lowering the base interest rates affecting the Euribor.