ECB’s Stournaras: A further decrease in inflation is expected

  • Cannot exclude a further hike but we are data driven
  • Keeping rates at terminal level ‘might be six months or a year’ depends on the data
  • We are definitely close to the end of interest rate hikes

Lagarde essentially promised a July rate hike but the market is only pricing it at 70%. The ECB sources leaks suggest the real debate will be in September but the market has repeatedly hinted that July isn’t a sure thing and Sept is around 55% for another hike.

This article was written by Adam Button at Source