ECB Signals Further Tightening, Nordea Sees Rate to 3% by March
Nordea strategists note the ECB kept its deposit rate at 2.25% but signaled further tightening, forecasting three more 25bp hikes at a quarterly pace to reach 3% by March.
EURUSD
The European Central Bank (ECB) held its deposit rate at 2.25% at its latest meeting, but reiterated its commitment to further monetary tightening. The decision aligns with expectations of a continued hiking cycle, albeit at a more measured pace.
According to Nordea strategists Jan von Gerich, Tuuli Koivu, and Anders Svendsen, the ECB is likely to deliver three additional 25 basis point rate increases. These hikes are now expected to occur on a quarterly basis, which would bring the deposit rate to 3% by March.
Source: FXStreet Forex News