ECB Hiking Cycle May Extend to 3% – Nordea
Nordea analyst Kristian Nummelin expects the European Central Bank to raise rates next week, citing elevated inflation and strong core momentum. Markets are pricing a similar extension of the hiking cycle to 3%.
EURUSD
Nordea's Kristian Nummelin predicts that the European Central Bank will deliver a rate hike at its upcoming meeting next week. The expectation is driven by persistently elevated inflation and robust core price momentum, which keep pressure on policymakers.
Market pricing already reflects a similar outlook, with the ECB's hiking cycle potentially extending to a terminal rate of 3%. The assessment from Nordea adds to the hawkish narrative surrounding the euro-area monetary policy.
Source: FXStreet Forex News