• The European Central Bank will raise the deposit interest rate by 20 basis points in September 2019, according to BNP Paribas projections

Market news

2 January 2019

The European Central Bank will raise the deposit interest rate by 20 basis points in September 2019, according to BNP Paribas projections

This would be the first rate increase in the year as the ECB reiterated it plans to keep interest rates at present levels "at least through the summer of 2019." The second interest rate increase--also a 20 bps hike--would take place in March 2020, together with the first 25 bp hike to the refinancing rate, says Camille de Courcel, Senior Rates Strategist at BNP Paribas. Slowing growth in 2020, however, is likely to prevent the ECB from raising the deposit facility rate above 0%, she adds - via WSJ.

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