ECB Set to Raise Rates in September, but Then Done
All 65 economists in a Reuters poll expect a quarter-point hike to 2.50%, as inflation stays above target and policymakers signal no further move.
- On September 10, the European Central Bank will raise interest rates to 2.50% for the second and final time, marking its shortest hiking campaign in 15 years, according to a Reuters poll published Thursday.
- Euro zone inflation accelerated to 3.3% in August, drifting above the ECB's 2% target primarily due to energy costs, reinforcing the case for the rate increase.
- All 65 economists surveyed by Reuters predicted the deposit rate will lift by a quarter-point to 2.50% next week, with about 91% expecting the rate to end this year at that level.
- Pia Fromlet, euro area economist at SEB, said, "When it comes to beyond September, the reason why they will stop hiking is we still think inflation will approach target during the course of next year."
- Carsten Brzeski, global head of macro at ING, said, "It's difficult to envisage the ECB being willing to risk a recession to tackle what is still a textbook supply-side shock," signaling limited appetite for further tightening.
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ECB may hike rates amid higher eurozone inflation
The European Union's central bank is likely to raise interest rates when it conducts its next review on Sept 10, experts have warned, but the hike will not be as dramatic as those seen in 2021 and 2022, when there were similar energy-driven inflationary pressures.
With inflation to rise and markets to anticipate rising interest rates, the analyst advocates the need for Europe to further accelerate its energy independence.
Given the growing inflationary pressure in the region, the European Central Bank (ECB) is likely to raise interest rates on September 10, and they should continue to increase thereafter, says Gediminas Šimkus, Governor of the Bank of Lithuania (LB).
The European Central Bank will raise interest rates next Thursday, September 10th, for the second but last time, completing a cycle of hikes that may prove to be the shortest in 15 years. ECB interest rates: Economists see another rise in September and then end - NAUTEBORIKI
(Teleborsa) - A quarter point increase in ECB interest rates at the next meeting on September 10 seems increasingly likely for ING. This, writes Carsten Brzeski, Global Head...
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