Citing nine sources familiar with the European Central Bank (ECB)Reuters reported on Monday that the entity’s policymakers are anxiously waiting to close their asset purchase program as soon as possible so that they can start raising interest rates in July and at the latest in September.
key takeaways
“It was a little over 2%, so in my interpretation all the criteria for raising interest rates have now been met.”
“When (Chief Economist) Philip (Lane) presented the numbers, people applauded.”
“Almost all sources said they see at least two rate increases this yearbut some have argued that a third is also possible, although it largely depends on how the markets digest its moves.”
Markets are pricing in around 85 basis points of increases for this year, so more than three 25 basis point moves would be seen, putting the deposit rate back in positive territory for the first time since 2014.
Source: Fx Street
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