A move up to 3.25 percent is not yet fully priced into the market. While our official call remains for a 3.25 percent level being reached in December, the balance of risks, in our mind, suggests that this level could be reached earlier.
A move up to 3.25 percent is not yet fully priced into the market. While our official call remains for a 3.25 percent level being reached in December, the balance of risks, in our mind, suggests that this level could be reached earlier.
With those few, clear words, the May rate hike is off the table, and I'm not even sure about June. I think it was very disappointing.
In order to pave the way for another refinancing rate hike in March, the ECB would need to signal that another move was on its way in one of the next two press conferences.
The way the data are shaping up, they might consider slightly speeding up the pace of tightening. The situation today is different than in December.
© 2020 Inspirational Stories
© 2020 Inspirational Stories