Euro Growth Cut to 0.6% Amid Energy Shock

BofA cuts euro area 2026 growth forecast to 0.6% and 2027 to 1.0% due to sharp energy price shock.
Inflation projected to rise to 3.3% in 2026, falling to 2.1% in 2027, with oil and gas driving persistence.
ECB expected to hike rates by 25 bps in June and July 2026 to 2.50% deposit rate, then cut in June 2027.
Germany growth cut to 0.3%, Italy to 0.2%, while France and Spain see slightly better outlook but still weak.