The picture of Europe in a snapshot - Nomura

Analysts at Nomura explained that economic activity in the eurozone is expected to remain well above trend in 2018 and well above consensus. 

Key Quotes:

"Core inflation should grind higher in the coming months and close in on ECB target levels by the end of 2018. 

We believe the ECB will normalise monetary policy more rapidly than markets expect. 

UK outlook highly dependent on Brexit – expect a two-year EEA-style transition deal to be agreed in the coming quarter and eventually a Canada-plus style free trade deal.

Near-term: slow domestic demand growth thanks to above-target inflation and political uncertainty to offset stronger net exports. 

We see UK GDP growth broadly stable at 1.5% in 2018 and 2019, with inflation falling as the FX impact wanes in 2018. 

We expect the BoE to raise rates twice in 2018 (May and November), a pace we think will continue in 2019 – faster than markets think."