ECB Expected to Deliver 25bp Hike on Thursday, Commerzbank Says
Commerzbank strategist Rainer Guntermann says a 25 basis point rate hike by the European Central Bank on Thursday is almost certain and fully priced, which would be the first increase since September 2023. He does not expect a follow-up move in July, viewing that as premature, but anticipates another hike later in the year, with cuts expected in 2024.
Commerzbank strategist Rainer Guntermann stated that a 25 basis point rate hike by the European Central Bank this Thursday is near-certain and fully priced in by markets. If delivered, it would mark the ECB's first rate increase since September 2023.
Guntermann does not foresee a back-to-back hike in July, describing such a move as premature. However, he expects the ECB to deliver another rate increase later in the year. Looking further ahead, the strategist projects the central bank will begin cutting rates in 2024.
The analysis points to a gradual hiking path now, followed by easing next year, reflecting the ECB's balancing act between inflation and growth concerns.
Source: FXStreet Forex News