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ECB’s High Interest Rates Probably Stalled Euro-Zone Economy
The euro-region economy stalled or even contracted in the third quarter under the cumulative weight of successive interest-rate hikes, according to forecasters. All but four of the 29 economists surveyed by Bloomberg predict data on Tuesday to show gross domestic product either stagnated or shrank after only a brief spurt of expansion during the three months through June. A separate report is seen likely to reveal noticeably weaker inflation in October. European Central Bank President Christine Lagarde warned this month that an unprecedented tightening in financial conditions is taking hold after 10 rate increases. ... (full story)