ECB sees no consumption boom as rich have most of the savings

The ECB found that the 20% of households with the highest income held 49.3% of the excess savings made in 2020-22, followed by the next quintile at 19.8%.

Since richer people are less likely to spend every additional euro saved, this meant those savings were unlikely to be deployed any time soon. The blog's authors found some of those savings had been invested in financial assets, such as stocks and bonds, or in property, making them harder to access. "Those hoping that the money put aside during the pandemic will support a surge in consumption any time soon will likely be disappointed," wrote authors Niccolò Battistini and Johannes Gareis.unchanged last week and investors expect it to start cutting them in the spring as inflation falls and the economy stagnates, or even shrinks.

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