Wage growth in the eurozone is slowing

Many central bankers will now pay even closer attention to the figures for the first quarter of 2024, which will be published in May. “The slowdown in wage growth late last year should provide some relief that the feared wage-price spiral will not unfold in the eurozone,” said Carsten Brzeski, global head of macro at ING. But “the ECB will definitely want to wait for data on wage growth in the first quarter before deciding whether to cut interest rates. There is no reason to change our call for a first rate cut in June.