Nordea anticipates two further ECB rate hikes as October headline inflation reaches 4.0%, balancing the need for policy tightening against emerging risks from weaker economic activity and tighter financial conditions.
Euro-area headline inflation rose to 4.0% in October and Nordea expects two more ECB rate hikes, which supports the euro. Core inflation stayed at 2.5% with modest second-round effects. Downside risks from tighter financing conditions and weaker activity may cap gains.
Nordea expects two more ECB rate hikes.
Headline inflation was 4.0% and core inflation was 2.5%.
Nordea projects the European Central Bank will implement two additional rate hikes following an October headline inflation print of 4.0%. While core inflation remains steady at 2.5%, the firm notes that tighter financing conditions and cooling economic activity present significant downside risks to the outlook.
Nordea expects two more ECB rate hikes.
Headline inflation was 4.0% and core inflation was 2.5%.