By David Zahn, head of European fixed income at Franklin Templeton
We anticipate that the ECB will hike rates by either a hawkish 25bps or a dovish 50 bps heading to a final hike in the coming months. We believe they will favour the 50bps hike to get the remaining interest rates hikes done sooner rather than later to combat inflation as inflation is still running high.
However, the market reaction will also focus on the press conference where Lagarde will clarify the hike and the potential remaining hikes to come.
ECB may favor the 50 bps hike
Picture of David Zahn (Quelle: Franklin Templeton)
