Deutsche Bank says that downward revision of inflation expectations may open space for the European Central Bank to keep interest rates unchanged within the year.

robot
Abstract generation in progress
Jinse Finance reports that on June 26, Deutsche Bank stated that the decline in oil prices has led to a downward revision of inflation expectations. If this trend continues, it may open up room for the European Central Bank to keep interest rates at 2.25%, especially after a rate hike has already been implemented. In a report released on Thursday, strategists including Soniya Sadeesh wrote that the 1y1y and 2y1y Harmonized Index of Consumer Prices (HICP) have fallen below 2% over the past week. They wrote that, of course, the ECB was prepared to ignore below-target forward inflation readings last year, and policy focus will remain on second-round effects and core indicators. They also stated that this interpretation has already been reflected in market pricing, with the market expecting more than one additional rate hike by the end of the year.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned