Central Banks
ECB Seen Sending Rates to Higher Peak in Face of Recession Risk
- Survey of economists predicts 75 basis-point hike next week
- Quantitative tightening seen starting by second half of 2023
The European Central Bank (ECB) headquarters in Frankfurt.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The European Central Bank will act much more forcefully than previously anticipated to rein in record inflation, even as the euro zone succumbs to a recession, according to a survey of economists.
The ECB’s deposit rate is expected to reach 2.5% by next March, more than the 1.5% foreseen in an earlier poll. That advance includes a 75 basis-point hike on Oct. 27, and another 50 basis-point step in December.