Global markets are focused on the ECB’s interest rate decision. At the meeting to be held today, it will be decided whether the interest rate will be 50 basis points or 75 basis points.
ECB expected to raise interest rates amid high inflation
While the European Central Bank (ECB) is expected to increase interest rates today as part of the fight against high inflation, the markets are focused on how big the increase will be.
Worried that inflation, which is seeing peak levels, is becoming more and more permanent, officials are struggling to contain the worst price increases in almost 50 years. Price increases consume household savings and put pressure on production.
The ECB will decide at its meeting today whether the size of the rate hike will be 50 basis points or 75 basis points.
If the increase is 75 basis points, it will be the largest rate hike in the history of the ECB .
The ECB will announce its policy decision and its new expectations for the economy at 15:15, ECB President Christine Lagarde will hold a press conference at 15:45 CEST.
It is thought that interest rate hikes will continue in the coming months due to the expectations that price pressures will cause a recession that exceeds even the most pessimistic forecasts in the winter season.
In light of the pro-tightening statements of some officials, the markets are currently pricing an increase of around 75 basis points.
