ECB: A 50 bps rate hike is priced in… What next? – UOB

Economist at UOB Group Lee Sue Ann comments on the imminent interest rate decision by the ECB (March 16).

Key Quotes

“How far and how fast the ECB will hike interest rates is still unclear. For now, we expect the ECB to hike by another 50bps at this meeting. This will bring the refinancing rate to 3.50% and the deposit rate to 3.00% by 1Q23.”

“The Mar meeting will also feature a new set of economic forecasts that should heavily influence the ECB’s decision going forward, and we will update our ECB forecasts accordingly then.”