TD Securities Expects ECB to Raise Deposit Rate to 2.25%
TD Securities forecasts that the European Central Bank will hike its deposit rate to 2.25% in response to persistent high energy costs.
EURUSD
TD Securities' Global Strategy Team anticipates the European Central Bank (ECB) will increase the deposit rate by 25 basis points to 2.25%. The move is driven by persistently high energy prices, which continue to fuel inflationary pressures in the eurozone.
The forecast underscores the credibility challenge the ECB faces in balancing inflation control with economic growth. A rate hike would signal the bank's commitment to price stability, but it also risks dampening the already fragile recovery.
Source: FXStreet Forex News