January 30, 2023 11:15 GMT
MNI ECB Preview - February 2023: With 50bp Fully Priced For February, Focus Shifts To The March Meeting
A 50bp hike in February appears to be a done deal. Focus now shifts to potential guidance for the March GC meeting.
With 50bp Fully Priced For February, Focus Shifts To The March Meeting
- The ECB is set to hike policy rates by 50bp at the February meeting – a position that has now been well telegraphed and fully priced by the market.
- There is unlikely to be any surprise policy innovation beyond some technical details on how QT will be implemented.
- Markets will look for any clues on the March policy rate decision and we believe it more likely than not that Lagarde will hint at a similar sized hike at that meeting.
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