Central Banks
ECB’s Peak Rates to Endure Despite Economic Perils, Survey Shows
- Economists see rates at plateau, expect first cut in September
- Faster balance-sheet reduction risks triggering market rout
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The European Central Bank will next week hammer home the message that borrowing costs are set to stay high for an extended period — despite risks to economic growth swirling, according to a Bloomberg poll of analysts.
After 10 consecutive interest-rate hikes, respondents don’t see any further tightening and predict the Governing Council will confirm by January that a peak has been reached. They expect the first cut in September, following earlier moves to shrink the balance sheet more rapidly.