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The ECB’s big meeting is in December — here’s what analysts expect from this week’s rally

Like most central banks, higher-than-expected inflation is a hot topic for the European Central Bank.

President Christine Lagarde and most of the rest of the ECB are temporary camps, at least for now. Of course, eurozone inflation isn’t as bright as the US, with consumer prices rising 3.4% from 5.4% in the US in September, but still faster than 5.4% in the US. The ECB said as recently as last month.

Bond markets have reacted, pushing up yields. The combination of soaring energy prices and solid deployment of vaccination after a late start is putting pressure on ECB policy makers.

James Rossiter, Head of Global Macro Strategy for TD Securities, said: ECB Chief Economist Philip Lane has already had some backlash.o Adjust some of the market views With very clear and easy-to-understand guidance. “

Citi’s currency strategist Ebrahim Rabari also hopes to oppose both the 2022 and 2023 rate hikes and the reconsideration of plans to end quantitative easing first and raise rates later. increase. The ECB has been hurt by a history of premature rate hikes and is also wary of increasing risk in the surrounding area, Rahbari said.

Carsten Brzeski, global head of macros at ING, said Lagarde wouldn’t reveal much. “She needs all the energy to soften what seems to be a widening rift between hawks and pigeons in our view. With ECB members who support withdrawal from emergency tools, Among the members who are still afraid that medium-term inflation is too low, not too high. “

The ECB’s big meeting is in December — here’s what analysts expect from this week’s rally

http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-76FD-A88B7547DE19%7D&siteid=rss&rss=1 The ECB’s big meeting is in December — here’s what analysts expect from this week’s rally

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