ECB Preview

Danske Bank expects the ECB to raise the deposit rate by 25bp to 2.25% on June 11, with further hikes likely in Q3. The decision is driven by a need to anchor inflation expectations despite downward revisions to the growth outlook.

Key Takeaways

• 1.The ECB is expected to hike the deposit rate by 25bp to 2.25% at the June 11 meeting.
• 2.New staff projections are expected to show upward revisions for inflation and downward revisions for economic growth.
• 3.Lagarde is expected to maintain policy optionality, with markets pricing in another hike in Q3.

Table of Contents

• ECB Preview
• New staff projections to show higher inflation and lower growth
• Disclosures
• Analyst certification
• Regulation
• Conflicts of interest
• Financial models and/or methodology used in this research report
• Risk warning
• Expected updates
• Date of first publication
• General disclaimer
• Disclaimer related to distribution in the United States
• Disclaimer related to distribution in the United Kingdom
• Disclaimer related to distribution in the European Economic Area

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