European Central Bank: Inflation keeps three rate hikes in play

Nordea’s Ole Håkon Eek-Nielsen and Jan von Gerich expect the European Central Bank (ECB) to deliver three additional 25bp rate hikes, taking the deposit rate to 3%. They see gradually building inflation pressures from earlier energy price rises, strained supply chains, solid Euro-area growth and low unemployment. The authors note wide risks around the rate path, driven by Middle East developments and energy-market disruptions.

ECB seen extending hiking cycle

“The ECB’s message at the July meeting was still in line with further rate hikes to come.”

“We continue to expect three more 25bp increases, taking the deposit rate to 3%, but revised the…

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