Dutch International Predicts Fed and ECB Will Raise Rates Once Each Before Year-End
Dutch International expects that the Federal Reserve and the European Central Bank will each raise interest rates once before the end of this year, changing their previous forecast of maintaining rates. Economists noted in a report that recent meetings of the Fed and ECB indicate that these central banks are unlikely to adopt accommodative monetary policies. Both central banks are facing supply-side shocks due to soaring energy prices, although the overall impact on the economy remains limited. At the same time, the sharp rise in inflation in 2022 and the lagging response of monetary policy are still fresh in memory. Economists anticipate that both central banks may raise rates in December.
-- Price
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