Eurozone in Recession, China Cuts Deposit Rates to Boost Economy

The euro zone has entered a technical recession after revised estimates from Eurostat showed a contraction of -0.1% in Q1 2022. Germany and Ireland also cut their growth figures for the same period, with Ireland showing a contraction of almost 5%. The lackluster economic environment poses a challenge for the European Central Bank, which has been on a hawkish path for the last 12 months and most recently set its main rate at 3.25%.