Eurozone economic expansion becoming increasingly self-sustaining - Wells Fargo

Analysts at Wells Fargo, expect that the increasingly self-sustaining economic expansion in the Eurozone will remain intact going forward.

Key Quotes: 

“Real GDP In the Eurozone rose 0.6 percent in Q2-2017, the 17th consecutive quarter in which economic output in the euro area has grown. The demand-side drivers of real GDP growth appear to be broad based at present, and the economic expansion is becoming increasingly self-sustaining.”

“Although the unemployment rate has receded to an 8-year low, there are few signs yet of a sustained upturn in CPI inflation in the euro area. As a result, we expect the ECB will proceed with caution when shifting from an easing to a tightening policy framework, just like its Federal Reserve counterpart did a few years ago. We look for the ECB to leave its policy rates unchanged for the time being and announce a reduction in its monthly bond purchases at the September 7 meeting, although we acknowledge that policymakers could conceivably wait until the October 26 meeting to make the announcement.”