bullish
ECB: Delivering the Required Hikes
482 Views17 Mar 2023 00:45
SUMMARY
- The ECB delivered another 50bps rate hike, as promised in February and expected. It is not allowing Silicon Valley Bank’s broadly irrelevant failure to break its focus.
- Higher core inflation forecasts extend the problem and necessitate a tight monetary setting to break excessive pressures. ECB policy will rightly be data-dependent.
- We forecast 25bp deposit rate hikes in May and June, with risks skewed towards further steps if resilience outlives the current financial stability issues.
Begin exploring Smartkarma's AI-augmented investing intelligence platform with a complimentary Preview Pass to:
- Unlock research summaries
- Follow top, independent analysts
- Receive personalised alerts
- Access Analytics, Events and more
Join 55,000+ investors, including top global asset managers overseeing $13+ trillion.
Upgrade later to our paid plans for full-access.
or
Already have an account? Sign In Now
Discussions
(Paid Plans Only)
- EA: Narrow HICP Slowing in Mar-2319 Apr 2023
- EA: HICP Crashes to Our Mar-23 Forecast31 Mar 2023
- EA: HICP Resilience Confirmed in Feb-2317 Mar 2023
- ECB: Forceful Pre-Commitment03 Feb 2023
- EA: Resilient Data Buttress Hawkish ECB01 Feb 2023
x