ING Bank: The ECB is expected to raise interest rates by 50 basis points, rejecting market speculation on interest rate cuts

On February 2, the European Central Bank raised interest rates by 50 basis points on Thursday, which is basically a foregone conclusion. The European Central Bank is likely to reiterate its guidance for a 50 basis point rate hike in March and dismiss market speculation on a rate cut for the bank.

But with new forecasts to be released at the March meeting, the ECB’s decision should be heavily influenced. As a result, markets will be more inclined to rely on their expectations of how ECB officials’ forecasts at the March meeting will evolve than ECB President Christine Lagarde’s guidance.