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BofA Pulls Forward ECB Hike Call To Sept 2022...From 2024

ECB

For good measure, BofA has also changed its ECB call: now is expecting QE ending in July, with 25bp deposit rate hikes in each of September and December. "The hawks have won...The doves have thrown the towel..."

  • To put this into perspective, their previous view was the the ECB would stay on hold until 2024 (and even now they say that "we continue to think that 2023 hikes (never mind 2022 ones) are premature."
  • As such, "The risk of this ending up as another "Trichet moment" is not zero."

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