Posted on September 13, 2022 We start the week still digesting the decisions made by the ECB last week, and with our sights set on the future rate hike by the Fed and the BoE. The week will continue to be marked by the evolution of the energy crisis and economic data, including the US CPI for August. A low figure could revive speculation that the Fed will only raise interest rates by 50bps this month, although the market is currently betting on a 75bps hike. Regarding Europe, the vice-president of the ECB Luis de Guindos stated that the central bank will make more rate hikes soon, but without giving details regarding the magnitude of these increases. De Guindos commented on the situation of great uncertainty surrounding the Eurozone economy, but insisted that the ECB does not work with a scenario of economic recession but of slowdown. The Russian ambassador to Germany recalled that the Nordstream 2 gas pipeline is ready to start operating to solve Germany’s problems in importing natural gas after the suspension of the gas pipeline as part of the sanctions imposed on Russia. During the week, the focus of attention will be on the publication of the inflation data for the month of August in the United States. We will also know the German harmonized CPI, the UK unemployment rate and the Zew economic sentiment index for the euro zone.
INFORMATIONTitleTHE RATE RISE, THE DOMINANT FUTURE SCENARIO DescriptionWe start the week still digesting the decisions made by the ECB last week, and with our sights set on the future rate hike by the Fed and the BoE. Author GLOBALCAJA