With a 50bp rate hike at next week’s ECB meeting seemingly a done deal, the main point of interest next week will be any messaging about how much further rates will rise beyond that. We now think that the resilience of the economy and persistence of core inflation mean the Bank will raise the deposit rate by a further 50bp in March and 25bps at the next two meetings, bringing it to a peak of 3.5%. We also expect the ECB to accelerate QT from June.
Central Bank Drop-In (2nd Feb., 11:00 EST/16:00 GMT): Join us for this special 20-minute online session when we’ll be taking your questions and highlighting key takeaways from the first Fed, ECB and BoE policy decisions of the year. Register here. Register now
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services