International credit rating agency Moody's stated that the uneven economic recovery and the rising inflation in the Euro Zone pose policy challenges for the European Central Bank (ECB).
Uneven economic recovery in Euro Zone poses policy challenge for the ECB
Indicating that the European Central Bank is expected to maintain its loose monetary policy at a high level for several years, the statement also noted that the short-term rise in inflation was related to the rapid recovery of the Euro Zone from the pandemic.
Emphasizing that the uneven economic recovery and rising inflation in the Euro Zone pose policy challenges for the ECB, the statement points out that the economic recovery in the area looms on the horizon, but it may take longer for Greece, Portugal, and Spain to reach their economic activity levels of 2019 compared to Germany and France.