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European Central Bank Expected to Stay Put Next Week, Market Watches Economic Forecasts and Rate Hike Signals
Summary: According to sources, the Financial Times analysis reported by FXStreet suggests that European Central Bank President Lagarde believes the bank is in good shape, with investors expecting the ECB to keep the benchmark interest rate at 2% next week and focus on its economic forecasts. Lagarde indicated this week that policymakers may again raise growth ...
According to sources, the Financial Times analysis reported by FXStreet suggests that European Central Bank President Lagarde believes the bank is in good shape, with investors expecting the ECB to keep the benchmark interest rate at 2% next week and focus on its economic forecasts. Lagarde indicated this week that policymakers may again raise growth forecasts for the eurozone at the meeting. Stronger growth forecasts and persistent inflation have led traders to increase bets on an ECB rate hike next year. However, due to ongoing debate over potential shifts in monetary policy direction and recent changes in forward market pricing, traders will be closely watching for clues on the timing of rate hikes, with any adjustments to policy signals expected to be subtle. George Morland, Eurozone economist at Royal Bank of Canada Capital Markets, predicts that the ECB will not raise rates in 2026, as the current tailwinds may be temporary. He added that the ECB has clearly stated its intention not to overreact to temporary deviations from its targets.
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Link: European Central Bank Expected to Stay Put Next Week, Market Watches Economic Forecasts and Rate Hike Signals [Copy]
