Having raised interest rates from 1.0% to 1.25% as expected, the ECB kept its options open over the likely size and timing of future interest rate increases. For now, we still think that the Bank will raise interest rates more gradually than the markets expect. But even a modest tightening is likely to prove damaging for the periphery.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services