Poll suggests the ECB could wait until the fourth quarter to raise rates, several banks expect a series of increases in Fed rates this year – Economy Bitcoin News

Poll suggests the ECB could wait until the fourth quarter to raise rates, several banks expect a series of increases in Fed rates this year – Economy Bitcoin News

A recent Reuters poll shows that the European Central Bank (ECB) could wait until the last quarter of the year (Q4) to raise its first interest rate in more than a decade. The author of the poll states that after the conflict in Ukraine, “fewer economists” predict that the ECB will raise the reference rate of banks earlier. Moreover, many financial institutions around the world are betting on the timeframe for raising Federal Reserve interest rates and how much the rates will jump this year.

Amid the conflict in Ukraine, economists are betting on an increase in European Central Bank interest rates

As the conflict in Ukraine continues, economists and financial analysts are debating whether central banks will raise interest rates this year or not. For the last two weeks since the war began, economists have he said it is possible that certain central banks will not raise rates or reduce the purchase of large assets while the war is still going on. On March 6, 2022, Reuters, an international news agency owned by Thomson Reuters, published survey this suggests that the European Central Bank (ECB) will wait until Q4 to raise rates.

Authors Swathi Nair and Jonathan Cable say the consensus stems from “a small majority of forecasters.” Despite rising inflation in Europe, the survey results show that 27 out of 45 respondents agreed that the ECB will wait until the last months of 2022. Reuters conducted the current survey between March 1 and 4, while the news agency published the same survey question for economists last year. months. After the incident in Ukraine, “fewer economists” predict that the ECB will raise rates faster.

“Only six economists expected the first increase to come earlier, in the third quarter, from 16 in last month’s survey,” the study said. Debates and bets on whether the ECB will raise interest rates at a policy meeting on March 10 have intensified. In a client note, economists at Rabobanka said the war should not change the ECB’s goals. “The war has not really changed the difficult combination of inflation and growth risks, it has only made it worse,” Rabobank economists told Reuters. An economist’s client note adds:

Therefore, logically, the ECB’s plans to cautiously and gradually withdraw some accommodative policies should not be substantially changed.

Global investment banks predict an increase in Fed interest rates

In addition to discussions about whether the ECB could raise interest rates this year for the first time in a decade, a possible increase in Federal Reserve interest rates is also a hot topic. The US Federal Reserve is expected to raise the reference interest rate in America this month, but the war in Ukraine may delay this decision. Prior to the conflict in Europe, a number of global investment banks predicted several increases in interest rates this year.

In mid-February, economists at Goldman Sachs Group Inc. they said they anticipate an increase of seven-quarters of a point by the end of the year. Others report notes that Citi expects the bank to add 150 basis points (bps) in 2022, and BNP Paribas expects six interest rate increases with an added aggregate of 150 basis points. Morgan Stanley’s prediction is the same as BNP Paribas and JPMorgan thinks the Fed will go as high as 175 bps. HSBC estimates that the Fed will add 50 bps this month and four more this year.

Meanwhile, with people anticipating a decision by the Fed and the ECB to raise interest rates, the process of making large bond purchases from both banks will reportedly be completed this month. According to the US Federal Reserve, the bank plans to buy approximately $ 20 billion in the monthly period that began on February 14 and will end on March 11. The ECB’s pandemic stimulus program has used 20 billion euros to buy bonds and the purchase is expected to stop this month.

Labels in this story

150 bps, 175 bps, reference interest rate, Buying bonds, Citi, ECB, The ECB is raising, Increasing the ECB rate, economist survey, European Central Bank, Fed, Increase Fed rate, Federal Reserve, HSBC, jerome powell, jpmorgan, March, morgan stanley, Poll, Q4, Rabobank, rate increases, Reuters poll, Poll, narrowing

What do you think about the forecast that the ECB will wait until the fourth quarter to raise rates? What do you think about investment banks betting on a series of Federal Reserve rate increases this year? Tell us what you think about this topic in the comments section below.

Poll suggests the ECB could wait until the fourth quarter to raise rates, several banks expect a series of increases in Fed rates this year – Economy Bitcoin News

Jamie Redman

Jamie Redman is a news anchor on Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about disruptive protocols appearing today.




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