According to a research note by the bank
They mention that the Euro-area could see constrained growth heading into the future, arguing that 2017 will be seen as this cycle's peak year for growth in the region.
"Though currently still above average, a further deterioration in growth expectations will put at risk job and wage growth, and hence momentum in activity and inflation", the note says.
The bank also forecasts growth in the Euro-area to be 2.1% in 2018 and 1.6% in 2019. That's lower compared to what the ECB forecasts here.
With regards to the ECB, they say that only time will tell if this slowdown will be significant for policy or not. They argue that growth should remain above potential and that would be enough to warrant gradual rate hikes - or a few at the very least.
However, "the risk however is that the consumers' appetite to spend recedes more dramatically and/or income growth disappoints, forcing the issue and either outcome would delay the ECB from rate hikes indefinitely", they argue.
Westpac is the latest of which to give the opinion that a possible slowdown in the Euro-area economy is brewing. Rabobank had a note here yesterday too, and it's something I mentioned earlier as well here.
