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ECB Watch: Firmly on a road of further 50bp rate hikes
Without too strong pre-commitments, the ECB remains determined to proceed with 50bp rate hikes in the coming meetings. With uncertainty elevated and the trust in forecasts low, course corrections may yet be needed many times further going forward. • We think the ECB continues to be determined to deliver further several 50bp rate hikes. • Market pricing of rate cuts looks quite aggressive compared to the ECB’s current thinking. • Risks tilted towards the ECB proceeding faster in reducing its bond holdings. The monetary policy account from the ECB’s December meeting, where it raised rates by 50bp, signalled ... (full story)