Global Data Pod: Another hawkish week in Western Europe

Macroeconomic data across Western Europe points toward a hawkish shift in central bank policies as growth proves more resilient than previously anticipated. Euro area PMI reports indicate annualized growth of 1.7%, prompting markets to price in at least four additional ECB rate hikes. Meanwhile, the Bank of England continues a measured, risk-management approach to tightening, with current data supporting a gradual pace rather than immediate acceleration. Small open economies face distinct challenges; Norges Bank maintains a "high for long" stance despite market pressure for more hikes, while Sweden’s Riksbank faces significant upside risks to its interest rate trajectory. Strong confidence indicators and potential spillovers from global inflation suggest these central banks may need to adjust their paths if current growth momentum persists.