The economists of commerzbank They discuss the economic outlook for the Eurozone and its implications for ECB policy and thus for the Euro.
ECB rate hikes will affect the Eurozone economy at some point
“PMI indices already suggest that ECB rate hikes will hit the Eurozone economy at some point. That means the doves on the ECB board could win the game at some point, at which point the Euro would lose important support.”
“Not only would the market possibly have to revise its view that there will be two more rate hikes in the ECB hike cycle, but it could also assign a higher probability that the ECB will cut its key rate again due to an economic slowdown. We will have to wait and see, but throughout the year the Euro could also run into some headwinds.”
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.
