Global X “The more gradual increase of the interest rates by ECB last year relative to the Fed has likely led to a more gradual slowdown in Europe compared to the U.S. Better-than-expected economic data in Europe despite stubbornly high inflation is likely to push the ECB to continue hiking at 50bps at this meeting at least.
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Morgane Delledonne Global X ETFs’ Head of Investment Strategy for Europe
As such, while Thursday’s ECB meeting is likely to be aligned with market expectations of a 50bps hike, a strong hawkish leaning from President Lagarde could surprise the market. I expect the ECB’s tightening cycle to end after the Fed’s as the pressures on core inflation in the euro area are only starting to pick up leaving more work ahead for the ECB to bring inflation back to target. I think Euro area interest rates could increase by another 150bps by mid-year before reaching their peak in this tightening cycle.”
Source : ETFWorld.co.uk
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