Pictet Wealth Management: The ECB will raise interest rates in September for the last time, and will not cut interest rates in the short term

Nadia Gharbi, senior economist at Pictet Wealth Management in Switzerland, said that a 25 basis point rate hike by the European Central Bank on Thursday looks almost certain, and the real debate is whether the ECB will raise interest rates again in September and beyond.

Therefore, a rate hike in September is not a certainty.
The bank believes that the rate hike in September will be the last of this round of tightening cycle, when the deposit rate will rise to 4%.

Nadia said that the ECB will then focus on the need to keep interest rates at current levels for a longer period of time, and we do not expect a rate cut until the second half of 2024.