ECB Seen Headed for Goldilocks Moment With Rate Path Just Right
- Economists aren’t concerned about over- or undertightening
- Deposit rate to hit 3.75% in July, hold there until June 2024
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The European Central Bank will neither raise interest rates too far nor stop lifting them too early, according to economists surveyed by Bloomberg who see borrowing costs peaking in July.
Following two quarter-point moves this month and next, the deposit rate is expected to remain at 3.75% for nearly a year to ensure inflation — still more than three times the target — retreats sustainably. Only seven of 42 respondents anticipate a third hike to 4% in September.