ECB account suggests two more 50bp hikes likely

The account of the December meeting, along with data released since then and recent comments from policymakers, suggest the ECB will raise its deposit rate from 2% to 3% by March rather than May as we had previously expected, and that QT will accelerate from June. For now, we forecast 3% will be the peak deposit rate, but with core inflation still rising, risks are tilted to the upside.

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