The European Central Bank meet this week – preview of a 25bp rate hike

The European Central Bank meet on Thursday 14 September. The statement is due at 1215 GMT, 0815 US Eastern time, with President Lagarde’s press conference a half hour later.

Bank of America are expecting a 25bp rate rise for all three policy rates. Analysts at the bank concede it’s a very close but believe the recent flow of data supports an interest rate hike. Further:

  • We expect little forward guidance but the bias will be for more

Further ahead BoA expect the first ECB rate cut in June of 2024, “at the earliest””

  • If September inflation print challenges our disinflation view we would likely delay our call for the first cut.

This article was written by Eamonn Sheridan at www.forexlive.com. Source