The European Central Bank signaled its intention to rise its interest rates by 50 basis points in each of its next two meetings. According to economists polled by Reuters, the ECB would stop such hikes when the deposit rate hits 3.25% next quarter.
55 of 59 economists polled expect the ECB to raise the deposit rate to 2.50% on February 2, with another 50-point raise expected in March. Finally, the economists expect the ECB to impose a third raise, this time by 25 basis points.
Such estimates come after ECB President Christine Lagarde told investors at the World Economic Forum in Davos last week that they should “revise their positions”, reiterating the positions of Dutch and Latvian policymakers that the ECB will persist with interest rate hikes.
The US Federal Reserve, which began its interest rate hikes several months before its European counterpart, is forecasted to end its interest rate tightening cycle after the implementation of two 25-point hikes over its next two policy meetings.
