A recent Bloomberg survey reveals a dramatic shift in monetary policy expectations for the Eurozone. Analysts now predict that the European Central Bank (ECB) will raise interest rates twice this year. This shift is primarily driven by runaway inflation, exacerbated by the fallout from the Iran war and subsequent disruptions to global energy supply chains.
According to the results of a survey conducted between May 4 and 7, economists expect the European Central Bank to implement two consecutive interest rate hikes of a quarter of a percentage point (25 basis points) each.
The first hike is likely to occur in June, followed by a second in September. This aligns more closely with the expectations of financial markets, which have already begun pricing in at least two quarters of monetary policy before the end of the year.
According to the results of a survey conducted between May 4 and 7, economists expect the European Central Bank to implement two consecutive interest rate hikes of a quarter of a percentage point (25 basis points) each.The first hike is likely to occur in June, followed by a second in September. This aligns more closely with the expectations of financial markets, which have already begun pricing in at least two quarters of monetary policy before the end of the year.
