Rates Spark Bracing for a Hawkish ECB

The ECB is expected to raise interest rates by 25bp to 2.25% with a hawkish tone, though market expectations of further hikes are likely stretched. The report suggests the scope for a significant hawkish surprise is limited.

Key Takeaways

• 1.The European Central Bank is expected to hike rates by 25bp, moving the deposit facility rate to 2.25%.
• 2.Market pricing for three ECB rate hikes appears stretched, with limited upside for hawkish surprises.

Table of Contents

• Rates Spark: Bracing for a hawkish ECB
• The bar has risen for a hawkish surprise from Lagarde
• Thursday’s events and market view
• Author
• Disclaimer

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