ECB slightly more hawkish than expected

Following a the ECB’s slightly hawkish policy shift this week, we have penciled in a rate hike for 2024 and think the chance of a 2023 lift-off has risen. The big picture, though, is that the ECB will stick to negative rates for a long while yet and that the ECB’s policy will diverge sharply from that of the Fed next year. Meanwhile, although we wish all our clients a happy holiday period, it looks as if the coronavirus will once again dampen festive spirits as well as retail and hospitality spending... – This will be the last Economics Weekly for 2021. The next Weekly will be sent on Friday 7th Jan. 2022 –