Inflation & Prices
ECB Seen Delivering Two Half-Point Rate Hikes on Way to May Peak
- Analysts predict deposit rate will settle at 3.25% until 2024
- Balance sheet to shrink to €6.9 trillion in 2023, survey shows
The European Central Bank (ECB) headquarters in Frankfurt.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
Back-to-back interest-rate increases of 50 basis points are approaching from the European Central Bank, whose battle with persistent inflation will see it hike borrowing costs until May, according to a Bloomberg survey of economists.
Respondents expect the deposit rate to then be held at 3.25% for about a year — until a souring economy brings about a series of quarter-point cuts, kicking off in June 2024.