There will be no interest rate hikes until 2023 – UOB

Lee Sue Ann, an economist at the UOB Group, believes that the ECB will start its cycle of rate hikes in the next year.

Key comments

Despite record rises in inflation, the European Central Bank (ECB) kept unchanged key interest rates. However, it will suspend net asset purchases under the Pandemic Emergency Purchase Program (PEPP).”

“The last decision occurs when market participants have started to price in two ECB rate hikes this year. However, President Christine Lagarde keeps subtracting that possibility“.

“At this juncture, we still think the ECB will stick to its roadmap, and we still don’t expect any rate hikes from the ECB until next year. The next monetary policy meeting will be on March 10, when the ECB will also update its growth and inflation forecasts.”

Source: Fx Street

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