ECB deposit rate to peak at 3.75% in July – Bloomberg survey

According to the economists surveyed by Bloomberg, a majority of them expect the European Central Bank (ECB) to hike rates by 25 basis points (bps) at its May, June and July policy meetings before pausing its tightening cycle.

Key takeaways

“That would take the deposit rate to 3.75%, where it would stay through the rest of the year.”

“The survey shows economist expectations are broadly in line with those of investors, who’ve pared back bets on the peak of this cycle of hikes following the banking collapses in the US and Switzerland.”

“Underlying inflation might have peaked in regard to quarterly averages, but will still be at 5.5% this quarter and is set to surpass the headline number in the second half of this year.”

Related reads

• US Dollar: Coming to a fork in the road – Goldman Sachs
• EUR/USD Outlook: Corrective pullback might still be seen as a buying opportunity