ECB rate decision: Five key questions for markets as energy prices fuel inflation fears
8 Articles
8 Articles
The reopening of Wall Street, the evolution of Brent and expectations for the ECB will be able to define the direction of markets this Tuesday, as investors begin to position themselves for the two major events of the week — the ECB's decision on Thursday and US inflation on Friday.
ECB rate decision: Five key questions for markets as energy prices fuel inflation fears
The European Central Bank is widely expected to raise its deposit rate by 25 basis points to 2.5% on Thursday as surging energy prices push eurozone inflation above 3%. While the September hike is largely priced in, markets will focus on the ECBs guidance on further rate increases, updated inflation and growth forecasts, currency-market risks and rising government bond yields.
Markets are watching the rise in oil prices while preparing for the almost certain imminent interest rate hike by the ECB.
The impact of gas prices, key to electricity generation in Europe, has triggered the European CPI and pushed the ECB up rates.
Money markets are fully pricing in the European Central Bank's (ECB) decision on Thursday to raise its deposit rate by 25 basis points to 2.50 percent. However, investors' main focus is on the implications of this increase...
Inflation in the euro area reached 3.3% in August, mainly as a result of rising energy prices. Other indicators are also fragile: wages are rising at a moderate pace, while the rise in long rates has already reduced the cost of credit for households, businesses and governments.
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