ECB Rate Hike: Just Wait

The European Central Bank will likely keep official interest rates steady at the Apr. 6 meeting of its governing council, which will leave the focus on the press conference after the meeting. With solid economic data and money supply accelerating in the euro zone (the 12 nations that share the euro as their common currency), further rate hikes are inevitable. We at Action Economics expect a quarter-point hike in June -- but see a risk that on Apr. 6, the ECB will deliver a hawkish press conference that will make financial markets steel themselves for a possible hike in May, one month ahead of expectations.

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