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ECB: Difference between revisions
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* "We continue to expect the ECB to hike rates by 25 bps in June, bringing the deposit rate to a peak of 3.50%, with risks of a final 25 bps hike in July depending on future developments in the U.S. banking system," | * "We continue to expect the ECB to hike rates by 25 bps in June, bringing the deposit rate to a peak of 3.50%, with risks of a final 25 bps hike in July depending on future developments in the U.S. banking system," | ||
=== June 15 2023 === | |||
ECB hikes interest rate by 25 basis points, taking its main target to 3.5% as expected by the market. However, future rate decisions look uncertain.<ref>https://www.ecb.europa.eu/press/pr/date/2023/html/ecb.mp230615~d34cddb4c6.en.html</ref><blockquote>“The Governing Council’s future decisions will ensure that the key ECB interest rates will be brought to levels sufficiently restrictive to achieve a timely return of inflation to the 2% medium-term target and will be kept at those levels for as long as necessary,” the ECB said in a statement.</blockquote> | |||
* ECB also revised its projections for headline inflation to 5.4% in 2023, 3.0% in 2024 and 2.2% in 2025. Initially, they forecasted headline inflation to average 5.3% in 2023, 2.9% in 2024 and 2.1% in 2025. | |||
* They also revised their projections for core inflation upward. They are now forecasting it to average 5.1% in 2023, 3.0% in 2024 and 2.3% in 2025. Initially, they projected it to average 4.6% in 2023, 2.5% in 2024 and 2.2% in 2025. | |||
* They revised down GDP projections to 0.9% in 2023 and 1.5% in 2024. Initially they forecasted it to be 1% in 2023 and 1.6% in 2024. | |||
== References == | == References == | ||