ECB policymakers keen for quick end to bond buys, early rate hike – Reuters
Citing nine sources familiar with European Central Bank (ECB) thinking, Reuters reported Monday that the central bank policymakers are eagerly waiting to wind up their asset purchases programme at the earliest so that they can begin raising raise interest rates in July and latest by September.
Key takeaways
"It was just over 2% so in my interpretation all the criteria to raise interest rates have now been met.”
"When (chief economist) Philip (Lane) presented the numbers, people actually clapped."
“Nearly all of the sources said that they see at least two rate hikes this year, but some argued that a third is also possible, although highly dependent on how markets digest its moves.”
Also read: EUR/USD drops below 1.0800, closes Macron win-led bullish open gap
Markets price in around 85 basis points of hikes for this year, so more than three 25 basis point moves, which would put the minus 0.5% deposit rate back in positive territory for the first time since 2014.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
