Deutsche Bank: ECB more likely to raise rates by 25bp this week

03/14 13:33

Analysts at Deutsche Bank, led by Mark Wall, said the ECB may abandon its guidance of a 50bp rate hike this week and raise rates by just 25bp following the Silicon Valley bankruptcy. The ECB is expected to consider the fundamentals of the European banking system to be sound. However, a global financial shock of uncertain size and duration is unfolding and European bank credit indicators have been weak recently. If global market conditions stop deteriorating, the possibility of a 50 basis point rate hike will remain. However, if markets do not stabilise by Thursday, the possibility of a temporary pause in rate hikes by the ECB cannot be ruled out.
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