Central Banks
Two More ECB Rate Hikes Seen Before QT Goes Live Early Next Year
- Economists predict deposit rate will peak at 2.5% in February
- QT likely to start by March, with caps to avoid market turmoil
The European Central Bank (ECB) headquarters in Frankfurt.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The European Central Bank will raise interest rates twice more in its struggle with unprecedented inflation, including a smaller half-point hike next week, economists predict.
Borrowing costs will be lifted by the same amount at February’s meeting, meaning the deposit rate will peak at 2.5%, according to analysts polled by Bloomberg. They also see the ECB starting to offload trillions of euros of crisis-era bond purchases sometime next quarter.