Explore eFXplus Derived Data That Drive Results
A Data Partner of:
Refinitiv
Oct 25 - 12:55 PM

EUR: ECB To Hike 75bps But Signals A Slowdown In Policy Normalization; Staying Cautious EUR - Credit Agricole

By eFXdata  —  Oct 25 - 11:00 AM

Credit Agricole CIB Research discusses its expectations for the ECB policy decision on Thursday.

"The ECB continues to emphasise the upside risks to its inflation outlook while downplaying the downside risks to the growth outlook...We think that that the hawkish market expectations (eg, 1Y1Y EONIA forward rate above 3%) could be put to the test as the Eurozone data deteriorates further in the coming months and this forces the Governing Council to ‘level with’ the markets about the prospects for a hard landing in the Eurozone and the impact of that on the bank’s policy," CACIB notes.

"Ahead of the October ECB meeting, we expect the Governing Council to meet the market expectations and deliver a 75bp hike but to signal that the policy normalisation would slow down from here while a potential QT is not imminent. This much would warrant a cautious view on the EUR from current levels," CACIB adds. 

Source:
Crédit Agricole Research/Market Commentary

Subscription

  • eFXplus
  • End-user license agreement (EULA)

About

  • About
  • Contact Us

Legal

  • Terms of Service
  • Privacy Policy
  • Disclaimer
© 2022 eFXdata · All Rights Reserved
!