6/16, 11:09 AM (Source: TeleTrader)
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Deutsche: New ECB tool allows for three 50 bps hikes

Investment company Deutsche Bank argued that the European Central Bank's latest tool to contain instabilities in the bond market would allow it to increase its key interest rates by 50 basis points three times throughout 2022.

"We now see hikes of 25 basis points in July and 50 basis points in September, October and December. This means 175 basis points of hikes over the next six months and a deposit rate of 1.25% at the end of this year," Deutsche Bank said in a report published overnight.

The bank's remarks follow an unplanned meeting of the ECB's Governing Council that took place yesterday. The ECB plans to end its net purchases under the asset purchase program on July 1.

Baha Breaking News (BBN) / ND