The ECB raised its interest rate by 75 bps, as expected.
The EU central bank also revised its inflation projections to average 8.1% in 2022, 5.5% in 2023 and 2.3% in 2024.
ECB also expect the EU economy to expand with annualized growth of 3.1% in 2022, 0.9% in 2023 and 1.9% in 2024, regardless of any signs of recession.
Meanwhile, Powell said that the Federal Reserve will continue to raise its key interest rate until the inflation rate is brought down and under control. Powell added that the Fed needs to keep at it until it does; the Fed needs to act strongly now as it has done before.
Both central banks tend to be hawkish, The next two weeks around US markets will be very busy: CPI is released on Wednesday and there’s a large option expiry on Friday. The week after brings the September FOMC rate decision with high expectations for a 75 bp hike.
The EU central bank also revised its inflation projections to average 8.1% in 2022, 5.5% in 2023 and 2.3% in 2024.
ECB also expect the EU economy to expand with annualized growth of 3.1% in 2022, 0.9% in 2023 and 1.9% in 2024, regardless of any signs of recession.
Meanwhile, Powell said that the Federal Reserve will continue to raise its key interest rate until the inflation rate is brought down and under control. Powell added that the Fed needs to keep at it until it does; the Fed needs to act strongly now as it has done before.
Both central banks tend to be hawkish, The next two weeks around US markets will be very busy: CPI is released on Wednesday and there’s a large option expiry on Friday. The week after brings the September FOMC rate decision with high expectations for a 75 bp hike.
