The European Central Bank policy meeting is today, statement deu at 1215 GMT with ECB President Lagarde's press conference following at 1245 GMT.
Earlier:
- More on Goldman Sachs forecasting a 75bp rate hike from ECB
- BNP Paribas expects the ECB to raise rates by 75 bps
- Poll: Economists almost evenly-divided on 75 bps hike from the ECB
- The ECB is facing internal disarray as the hawks push back
- Preview: ECB hiking cycle to be less sensitive to recession than thought -- 75 bps coming
- Preview: ECB policy announcement due Thursday 8th September 2022
- TD: Base case is for ECB 50bps hike; Fade EUR/USD rallies on 75bps hike
This now, a snippet from Barcalsys via eFX.
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- "The markets are pricing a 68bp hike at this week's meeting, 123bp by the October meeting and 174bp by year-end, cumulatively. We have also changed our ECB call and are now forecasting a 75bp hike at this week's meeting, followed by 50bp and 25bp hikes in October and December, respectively, bringing the depo rate to 150bp by year-end.
- We also expect that President Lagarde could indicate during the press conference that a discussion on the end of reinvesting proceeds of the APP portfolio could take place in coming meetings, signaling another hawkish normalisation step," Barclays notes.
- "As the markets are not fully pricing 75bp at September's meeting, such hawkish results could push EUR higher in the short term, but the sanguine economic forecasts for the euro area and ongoing energy concerns should keep the EUR under pressure in the medium term. If the ECB underdelivers, for example if it hikes by 50bp, the implication for the EUR could be a lot different and EUR/USD could test the lows again," Barclays adds.