China’s Reboot and Stable Energy to Help Europe Grow in 2023
ECB rate hikes, however, may dim the appeal of sovereign bonds.
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China’s reopening and an ebbing energy crisis are expected to give Europe's economy a boost this year, helping it avoid a recession, the latest MLIV Pulse survey shows.
A series of rate hikes by the European Central Bank aimed at taming the region’s inflation, however, are expected to tarnish the appeal of the region’s debt. The ECB’s deposit rate will top 3.5% after another 1.5 percentage points of hikes, according to more than a third of 201 respondents in the poll. An additional 15% see it heading to 4% or above, which would be a record level.