Euro: October ECB hike odds seen limited – Standard Chartered
Standard Chartered Global Research team discusses Euro area monetary policy, noting that core inflation has only edged up slightly since January and that higher yields pose downside risks to both growth and inflation. The authors judge that these factors reduce the chances of an October rate hike and expect the Governing Council to wait for new macroeconomic projections at the December policy…
Standard Chartered Global Research team discusses Euro area monetary policy, stating that core inflation has only marginally increased since January and that rising yields present downside risks to both growth and inflation. The analysts believe these factors limit the chances of an October rate hike and anticipate the Governing Council to hold off on a decision until new macroeconomic projections are released at the December meeting.
Additionally, core inflation has only incrementally risen from 2.2% in January to 2.5% year-over-year in September. Furthermore, Christine Lagarde has highlighted the risks to growth and inflation stemming from higher yields. Consequently, the likelihood of an October hike appears limited, according to the team. They also feel that the Governing Council would likely prefer to await new macroeconomic projections before making a policy rate change, with the subsequent decision expected at the December meeting.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 3 other outlets
- Bets on US Federal Reserve rate hike in October fall as job market cools economictimes.indiatimes.com
- Fed seen skipping October rate hike as job market cools brecorder.com
- October rate hike odds collapse after cooler payrolls print seekingalpha.com
