Will the ECB raise its interest rates in tandem?

While most forecasters now agree with our long-held view that the first ECB rate hike will come in September 2019, there is no clear consensus over which rate will rise first or why. In this Update, we explain why the deposit rate is now the best gauge of the effective cost of borrowing and argue that it is likely to rise a little quicker than the main refinancing rate next year.

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