The European Central Bank will start quantitative tightening next year, raising interest rates by 75 basis points

On October 25, Frederik Ducrozet, head of macroeconomic research at BTA Wealth Management in Switzerland, released a report saying that quantitative tightening (QT) may begin next year.

He said Europe was widely expected to raise policy by 75 basis points at its October 27 meeting and commit to further tightening in the coming months.

Once policy rates normalise, the ECB may confirm that quantitative tightening (QT) will begin in 2023.

“The important thing is that QT will be a passive, gradual process.”