Market news
20.04.2023, 13:36

ECB to hike in May, size of the move remains open – Nordea

The next meeting of the Governing Council of the European Central Bank is May 4. Jan von Gerich, Chief Analysts at Nordea points out that the majority of the board remains preoccupied with upside inflation risks, and is set to push further rate hikes. He argues that the size of the May hike will largely be determined by the data released just ahead of the meeting.

Key quotes: 

“The monetary policy account of the ECB March meeting confirmed that had it not been for the March banking sector worries, the central bank would have been more determined in signalling more tightening ahead. Now that the banking worries have continued to recede, the upside inflation risks evident in the account are likely to push the ECB into hiking rates several times further, subject to incoming data of course.”

“Another rate hike at the May meeting looks like a done deal, but the size of the move remains open. Market pricing is tilted towards a 25bp rate hike and that is also our baseline. However, an important data batch will be released on 2 May, just two days ahead of the ECB May meeting. On that date, the flash estimate for April inflation, the Q2 bank lending survey and the March credit numbers will all be out, and could yet tilt the scale towards a 50bp rate hike. One should thus prepare for large volatility already ahead of 4 May ECB meeting.”
 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location