ECB’s DeGuindos: Latest date points to deceleration in Q3 and probably Q4

  • Latest data from July and Aug point towards economic deceleration in Q3 and probably in Q4
  • We need to keep working to get inflation back to the 2% target
  • September decision is still up for debate
  • Data in the next days is key to the ECB decision
  • We are at the finishing stretch of rate hiking process

The market has shifted to pricing in a 73% chance of the ECB holding from about 50/50 at the start of the week. That’s fallen from about 60% before the comments from Schnabel earlier.

This article was written by Adam Button at Source