ECB Hikes Impact Euro Zone Inflation and Growth

Euro zone inflation in October was the lowest since July 2021, while the economy contracted by 0.1% in Q3, indicating the impact of European Central Bank interest rate hikes. The decline in inflation comes at the cost of economic growth, and the ECB is expected to pause rate hikes and potentially cut rates next year. Inflation is not expected to reach the ECB's 2% target until 2025. The euro zone may be entering a shallow recession, exacerbated by geopolitical conflicts.