FX

ECB inflation estimate raises prospect of earlier rate rise

The Financial Times recently reported that the European Central Bank expects to hit its elusive 2 per cent inflation target by 2025, according to unpublished internal models that suggest it is on course to raise interest rates in just over two years.

key notes

  • Unpublished ECB inflation estimate raises the prospect of an earlier rate rise.
  • The internal model suggests eurozone interest rates could go up in two years, closing the gap with a forecast move by Fed.
  • European central bank expects to hit its elusive 2 per cent inflation target by 2025.

EUR/USD bid

The euro has found demand on the news in recent trade, thwarting the bear’s attempts of a lower low before the close of the day in New York:

Articles You May Like

USD/MYR extra decline not ruled out – UOB
Sell MCX Gold April futures contract for a target of Rs 57,000 ahead of US Fed, budget
Semiconductor giant ASML sees 2023 sales surge; says China revenue to be steady despite U.S. chip restrictions
Logan Paul and CryptoZoo sued in class action lawsuit
Dollar Falls after ADP Miss, Gold To Try Breakout ahead of Fed

Leave a Reply

Your email address will not be published. Required fields are marked *