ECB Bird Watching Reinforces Willingness for More Rate Hikes

Bloomberg Economics’ European Central Bank spectrometer points to a growing shift in the hawkish direction as the ECB looks set to hike by another 50 basis points in September. The central bank’s decision to raise interest rates in July by double the amount that policy makers had previously signaled also shows how forward guidance on interest rates has been ditched. BE thinks the Governing Council will then hike rates by 25 basis points at each of the three following meetings in October, December and February.

Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.