Economist at UOB Group Lee Sue Ann sees the ECB raising the policy rates further at its meeting later in the week.

Key Quotes

“The recent hawkish tone by the ECB, despite the absence of formal forward guidance, has led us to pencil in further rate hikes ahead. There are two more meetings left for the year.”

“For now, we see the ECB hiking by another cumulative 50bps for this year to bring the refinancing rate to 1.75% and the deposit rate to 1.25% by year-end. This will bring rates to the “neutral” territory of between 1% to 2%.”