ECB may raise rates by 50 basis points in March and May.

The next meeting by ECB’s policymakers will take place on March 16. Experts do anticipate that the central bank’s deposit rate will peak at 4% following increases of 50 basis points in both March and May and 25 basis points in both June and July.

analysts have revised their predictions for the ECB’s policy trajectory and now anticipate a deposit rate high of 4%, with increases of 50 basis points in March, 50 basis points in May, 25 basis points in June, and 25 basis points in July.

The risks associated with analysts’ baseline rate hike forecasts are currently considered as broadly balanced, although analysts will inevitably remain data dependent and may change their call in the future. The upward revision by analysts is the result of more robust economic growth and more persistent inflation trends.

The EUR/USD is anticipated to rebound significantly once more as soon as markets start to turn their attention away from a stronger short-term picture and towards the cost of growth to be paid in the future. On the EUR/USD, analysts and watchers continue to set a 6M target.