The European Central Bank (ECB) is expected to announce, after the meeting on Thursday, a new rise in interest rates of 50 basis points to continue trying to control inflation, according to analysts.
This Thursday the first ECB meeting of the year takes place, after having closed 2022 in total with a set of increases of 250 basis points.
At the last meeting, in December, the institution led by Christine Lagarde slowed down the rate of interest rate rises, but warned that it would continue to raise them “significantly”, showing determination in the fight against inflation, which continues to be “too high “.
At that point, the ECB decided to slow down and bet on a 50 basis point rise in its interest rates, setting the main refinancing rate at 2.5%, the highest level since late 2008.
Speaking to TSFThe investment director of Banco Carregosa, Filipe Silva, does not believe that the decision that the European Central Bank will take this Thursday will have an impact on the Euribor and on the interest rates of the Portuguese public debt.
In recent times, interest rates on time deposits have been at very low levels. The investment director of Banco Carregosa believes that these remunerations will begin to rise, since the banks will also begin to receive more for deposits in the Banco de Portugal.
“An increase of 50 basis points is expected, according to the money market, and the ECB should also confirm an increase of another 50 basis points at the next meeting on March 16,” considers Paulo Rosa, senior economist at Banco Carregosa, in statements. to Lusa.
Along the same lines, in statements to Lusa, Filipe García, president of the IMF — Financial Markets Information, believes that “the ECB should raise 50 basis points [os juros]indicating that the job is not done and that despite the positive signs in the evolution of inflation, there are also signs in the economy, so the monetary tightening should continue throughout the semester”.
Franck Dixmier, global director of bond investments at Allianz Global Investors (AllianzGI), which is also aiming for a rise of 50 basis points, in a ‘research’ note, hopes “that the ECB president will continue to insist on her aggressive message, while that the expectations of the remaining investors regarding the terminal rate are very moderate”.
Goldman Sachs also points, in a research note, to a constant rate of increases of 50 basis points, considering, however, that the terminal rate “depends on the data.”
The interest rate applicable to the main financing operations and the interest rates applicable to the marginal credit facility and the deposit facility are currently 2.50%, 2.75% and 2%.
Source: TSF
