The European Central Bank (ECB) is expected to announce a fresh 50 basis point interest rate hike after Thursday’s meeting to continue trying to control inflation, analysts said.
This Thursday is the first meeting of the ECB this year, after it closed 2022 as a whole with a set of 250 basis points of increases.
At its most recent meeting in December, the institution, led by Christine Lagarde, slowed down the pace of interest rate hikes but warned it would continue to raise them “substantially” in a move to fight inflation that remains “too high.”
At that time, the ECB decided to slow down and chose to raise interest rates by 50 basis points, setting the main refinancing interest rate at 2.5%, the highest level since the end of 2008.
“Money market data is expected to rise by 50 basis points and the ECB should also confirm an increase of another 50 basis points at its next meeting on March 16,” Paulo Rosa, senior economist at Banco Carregosa, said in statements. to Luce.
In a similar vein, Luce Filipe Garcia, President of the IMF – Financial Markets Information, said in statements that “the ECB should go up 50 basis points.” [os juros]signaling that the job has not been done and that despite the positive signs in the development of inflation, there are signs in the economy too, so monetary tightening should continue throughout the semester.”
Frank Dixmier, global director of bond investment at Allianz Global Investors (AllianzGI), who also points to a 50 basis point gain, expects in a “research” note “that the ECB president will continue to push his aggressive message. , while the rest of investors’ expectations regarding the interest rate are very moderate”.
Goldman Sachs also points to a constant growth rate of 50 basis points in a research note, however, given that the terminal rate is “data dependent”.
The interest rate applicable to the main refinancing transactions and the interest rates applicable to the margin credit line and deposit line are currently 2.50%, 2.75% and 2%.
Author: Portuguese
Source: CM Jornal
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