[Economist: ECB's focus is on service sector inflation, next step will be rate hike rather than cut] Jin10 Data, February 5 – Irene Lauro, Senior Economist for Europe and Climate at Schroders Investment, stated that economic growth in the Eurozone continues to exceed expectations. With low interest rates and fiscal support gradually permeating the economy, internal demand within the Eurozone is gaining momentum. Overall inflation has fallen below target levels, but given the volatility of energy prices, the European Central Bank is largely expected to overlook this. Instead, policymakers will continue to focus on service sector inflation, where the inflation rate remains at an unsettlingly high level, and the anticipated end of wage growth slowdown this year is expected to exacerbate this phenomenon. Today's decision by the ECB confirms our view that the next move by the European Central Bank will be a rate hike rather than a rate cut.