Francois Villeroy de Galhau, the Governor of the Bank of France, believes that monetary policy is currently at its limits and has issued a warning against tightening it further amid escalating tensions in the Middle East, which could lead to increased oil prices due to heightened instability.

Simultaneously, the Eurozone's economy is performing poorly in terms of employment rates, productivity, and consumer spending ability. This is a result of the higher interest rates set by central banks. Furthermore, there are predictions that the Gross Domestic Product (GDP) might turn negative in the third quarter of 2023.

The policymakers at the European Central Bank (ECB) continue to emphasize the necessity of maintaining these elevated interest rates for an extended period, as high inflation rates could become a persistent problem. Additionally, ECB surveys indicate that Eurozone consumers expect inflation to remain at 2.5% for the next three years, as of August.

Investors also observe a 0.3% contraction in industrial production in the United Kingdom. Furthermore, Katherine Mann, a policymaker at the Bank of England (BoE), has voiced strong support for a more aggressive monetary policy this week. She underscores the importance of reducing inflation to a level below 2%.