Investment bank: Expectations of ECB tightening policy have increased

Economists at Brown Brothers Harriman Bank pointed out that ECB officials emphasized that the increased volatility of inflation and economic growth made decision-making more difficult. Expectations of the European Central Bank tightening policy have increased. The next policy meeting is on May 4, and WIRP shows about a 30% chance of a 50 basis point hike by then. After that, the June 15 interest rate meeting will raise interest rates by 25 basis points, and July 27 will raise interest rates by 25 basis points. The probability of the last rate hike in September or October is close to 45%, and the market currently expects the peak policy rate to be between 3.75% and 4.0%, up from 3.75% early last week and 3.50% the previous week.