The ECB says it'll 'stay the course' on rate hikes. But it's not clear for how long

  • 📰 CNBC
  • ⏱ Reading Time:
  • 43 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 72%

United States Headlines News

United States Latest News,United States Headlines

ECB's Lagarde has said 'we will stay the course to ensure the timely return of inflation' but market watchers are asking for how long.

Christine Lagarde

"The size of those rate hikes will depend on the inflation outlook. Lower price pressure will probably allow the ECB to hike by 25 basis points, rather than 50, in May and June," he added. "Panetta's speech shows that ECB doves are regrouping, but hawks are still firmly in charge for at least the next couple of meetings, for which our base case scenario is two 50 basis points hikes," Davide Oneglia, director at TS Lombard said in an email to CNBC.

"How far the ECB will actually be able to go after March remains to be seen," Oneglia said, adding that "a terminal rate of 3.50-3.75% seems possible" but the ECB "cannot diverge too much for too long from that of the Fed."whether the Federal Reserve might end its tightening cycle in upcoming meetings"So, if the U.S.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

So far batting 1000. Been wrong every time.

That's what you want to hear from the people leading your monetary policy... MoneyDubai

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in US

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

ECB's Panetta: ECB should not pre-commit to any specific policy move beyond FebruaryThe European Central Bank should not pre-commit to any specific policy move beyond February, European Central Bank (ECB) executive board member Fabio
Source: FXStreetNews - 🏆 14. / 72 Read more »

ECB's Simkus: Should continue with 50bp rate hikesEuropean Central Bank (ECB) policymaker Gediminas Simkus said on Tuesday that the ECB should continue with 50 basis points (bps) rate hikes amid growi
Source: FXStreetNews - 🏆 14. / 72 Read more »

EUR/USD sees recovery to near 1.0900 as ECB to continue rate hikes beyond summerThe EUR/USD pair is aiming for a recovery extension to near the critical resistance of 1.0900 as the odds of hawkish European Central Bank (ECB) bets
Source: FXStreetNews - 🏆 14. / 72 Read more »

ECB's Nagel: We have to continue tightening to dampen price pressuresIn an interview with French magazine L'Express, European Central Bank (ECB) policymaker Joachim Nagel argued the ECB needs to continue to tighten the
Source: FXStreetNews - 🏆 14. / 72 Read more »

Euro to appreciate in 2023 supported by improved macro backdrop and ECB tightening – CIBCAn improving macro backdrop and continued policy tightening from the ECB portend Euro strength in 2023, according to economists at CIBC Capital Market
Source: FXStreetNews - 🏆 14. / 72 Read more »

ECB’s Makhlouf: Need to increase rates again at March meeting'We need to continue to increase rates at our meeting next week – by taking a similar step to our December decisions,' European Central Bank (ECB) Gov
Source: FXStreetNews - 🏆 14. / 72 Read more »