ECB rate hike cycle: how will they start?
Despite guidance for a ‘gentle’ start to rate hikes, could economic conditions convince the European Central Bank to tighten monetary policy more aggressively?
Key highlights
Key highlights
- Inflation in Europe had started to rise before Russia’s commodity shock.
- The current weakness of the euro has been another factor that has been driving inflation higher.
- ECB President Lagarde used the word ‘flexibility’ twelve times at their June conference, adding that the Council was prepared to use the flexibility given by their mandate on inflation.
- The political landscape in Europe is likely to be supportive of the ECB taking action to tackle the rising inflation.
Make an inquiry
Fill in an inquiry form and leave your details – we’ll be back in touch.
Introducing our leadership team
Meet the members of the team responsible for UBS Asset Management’s strategic direction.
