According to the latest Reuters poll of economists, The European Central Bank (ECB) is expected to raise rates another 50 basis points (bp) at its February policy meetingwhile the official interest rate is expected to reach 3.25% by mid-year.
additional conclusions
Is another 50 basis point rise likely in March.
The central bank will then add 25 basis points next quarter before pausing.which will mean a terminal rate in the current cycle of 3.25%, its highest level since the end of 2008.
In the December survey, the rate stood at 2.50% at the end of March and was expected to peak at 2.75%.
Inflation will average 6.0% this year and 2.5% nextbut it will be 2.0% throughout 2025.
The economy is now expected to grow 0.1% next quarterrather than stagnation. It is expected to grow 0.3% in the next two quarters.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
