Next week\u2019s the European Central Bank monetary policy meeting will be a key event that attracts traders\u2019 attention. According to analysts a 75 basis points interest rate hike is highly expected. Analysts also believe that the deposit rate will reach 3% by March 2023.
ECB\u2019s Lagarde will have to acknowledge additional inflationary risks, but observers widely expect her to stick to the stance that the ECB is merely \u2018frontloading\u2019 normalization.
With a 75bp increase next week and the prospect of another jumbo hike in December, it is arguable whether the ECB\u2019s tightening cycle can still be considered as \u2018frontloading\u2019, or whether this slogan will have to face the same fate as the famous \u2018transitory\u2019 comment earlier this year.
The inflation expectations are still deteriorating, with a strong acceleration in underlying price pressures. This factor cements a 75bp hike this month. Moreover, it is difficult to see how core inflation could come in below 3% in 2024.
A 75bp rate hike in October seems as a closed deal. This is why economists have also upgraded their expectations for the next few meetings, and now see the deposit rate could reach 3% by March.<\/p>\n","protected":false},"excerpt":{"rendered":"
Next week\u2019s the European Central Bank monetary policy meeting will be a key event that attracts traders\u2019 attention. According to analysts a 75 basis points interest rate hike is highly expected. Analysts also believe that the deposit rate will reach 3% by March 2023. ECB\u2019s Lagarde will have to acknowledge additional inflationary risks, but observers …<\/p>\n","protected":false},"author":13,"featured_media":71073,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[6923,6987,8143],"class_list":["post-74403","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-ecb","tag-inflation","tag-interest-rate-hikes"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/74403","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=74403"}],"version-history":[{"count":3,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/74403\/revisions"}],"predecessor-version":[{"id":74409,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/74403\/revisions\/74409"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/71073"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=74403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=74403"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=74403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}