Posted on June 7, 2022 This week the markets focus their attention on the meeting held by the ECB on Thursday, where no surprises are expected, since the position regarding the start of the rate hike process and its sequence has been made clear in the shorter term. Therefore, the announcement of a first rate hike is expected at the next meeting on July 21. Given the level of inflation at highs not seen in decades published last week, it will be key to see the tone used by President Christine Lagarde, as the current debate revolves around how to keep the right pace to proceed with the normalization of monetary policies. . Analysts are discounting hikes of 25bps in the July and September meetings, after the end of the purchase program in June, although last week some member of the ECB was in favor of accelerating this process with a hike of 50bps in July. If the inflation figures do not relax, it is possible that we will once again see a division within the Council between those in favor of accelerating the process and those in favor of doing it gradually. On the other hand, inflation in the month of May reached 8.1%, compared to an estimate of 7.8%, as a result of a higher rise in food and energy prices. Core inflation, excluding these two components, reached 3.8%. The outlook for the coming months is not positive and additional hikes are expected until the end of the third quarter, which will put even more pressure on the ECB. INFORMATIONTitleThe ECB prepares for the rate hike in JulyDescriptionThis week the markets focus their attention on the meeting held by the ECB on Thursday, where no surprises are expected, since the position regarding the start of the rate hike process has been made clear. types and their sequence in the shortest term. Author GLOBALCAJA
The ECB prepares for a rate hike in July
