Nomura: The European Central Bank will raise interest rates three more times this cycle, supporting the euro

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Nomura economists say the European Central Bank will raise interest rates three more times during this cycle. They believe the ECB's hawkish stance will boost the euro against the British pound in the coming months. Andrzej Szczepaniak, George Buckley, Josie Anderson, and David Seif of Nomura wrote after the ECB's expected 25 basis point rate hike on Thursday: The new baseline forecast issued by ECB officials led by President Lagarde is "more hawkish than we expected." "We believe the ECB's hawkish forecast is reasonable and will lead to tighter monetary policy than we previously anticipated." Nomura economists now expect the ECB to raise rates again in September, December, and March next year, bringing the deposit rate to 3%. (Sina Finance)
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