According to Jan von Gerich, chief analyst at Nordea, it is likely that the European Central Bank (ECB) kick off your rate hike cycle with a 25 basis point move on Thursday, despite clear signs of weakening growth momentum.
The focus will be on the anti-fragmentation tool
“With inflation too high and price pressures amplifying, the ECB has no room to soften its rhetoric at Thursday’s meeting, despite clearly weakening economic data.”
“Although some hawks have wanted to leave the door open for a higher rate hike, and recent media reports have suggested that the ECB will discuss a higher move this week as well, we believe the ECB will follow its previous guidance and raise rates at 25 basis points on Thursday.”
Source: Fx Street
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