ECB to hike rates by another 50 bps in September, but an even larger hike is not excluded – Nordea
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The accounts of the European Central Bank’s (ECB) July policy meeting showed that a large number of members agreed it was appropriate to raise rates by 50 basis points (bps). Therefore, economists at Nordea expect the ECB to hike rates by another 50 bps in September.
“The ECB is now fully in a data-dependent mode with chains from past guidance severed.”
“Most Governing Council members are preoccupied with inflation risks, and large rate hikes are set to continue.”
“We continue to think that the ECB will hike rates by another 50 bps at the next meeting on 8 September, but would not exclude an even larger hike.”
“The benchmark rate at zero remains extremely low and the inflation situation is increasingly worrying, so it is not difficult to find arguments in favour of fast hikes at least in the next few monetary policy meetings.”
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