Nordea economists explain three plausible scenarios for the outcome of the European Central Bank's monetary policy meeting next week:
"The ECB hikes rates and keeps its tightening bias intact; this would be a hawkish scenario that would likely boost interest rate expectations more durably. We think this is the least likely of the three scenarios."
"The ECB raises rates by another 25bp, but softens its tightening bias to suggest the bar for further hikes has risen; such an outcome would likely boost rate expectations only briefly."
"The ECB leaves rates unchanged while retaining its tightening bias; we think such an outcome would put some downward pressure on interest rate expectations, even if it would be considered a hawkish hold. This is also our baseline scenario."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD faces the next up barrier around 0.6400
AUD/USD extended its decline from Tuesday, slipping to two-day lows around 0.6320 on the back of the US Dollar’s rebound, all ahead of the release of the Australian jobs report.
EUR/USD: Further advances remain in the pipeline
EUR/USD came under pressure in response to the marked bounce in the US Dollar, reversing three daily gains in a row after the Federal Reserve left the door open to two rate cuts this year.
Gold remains supported by safe haven demand, Fed rate cuts
Prices of Gold rose further and surpassed the $3,050 mark per troy ounce, hitting an all-time high, after the Fed kept its interest rates unchanged at its meeting on Wednesday.
Bitcoin blunders or breakthrough? – Wave-C’s final leg unfolding
In our last update as of 7th Feb 2025, Bitcoin struggled to hold 100K, staying in the 94K–100K range for most of February 2025 as shown in the yellow box—except for a sharp breakdown in the final week.
Tariff wars are stories that usually end badly
In a 1933 article on national self-sufficiency1, British economist John Maynard Keynes advised “those who seek to disembarrass a country from its entanglements” to be “very slow and wary” and illustrated his point with the following image: “It should not be a matter of tearing up roots but of slowly training a plant to grow in a different direction”.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.