ECB on hold, but not for long

Danske Research Team Danske Bank A/S

We expect the ECB to keep policy rates unchanged, with the deposit rate at 2.25%, on Thursday 23 July, in line with consensus and market pricing. Lagarde to keep full optionality on the future policy rate path, leaving the door open to a September hike, but without pre-committing. We expect a final 25bp hike in September, bringing the deposit rate to 2.50%.

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Danske Research Team

Danske Bank A/S

Research is part of Danske Bank Markets and operate as Danske Bank's research department. The department monitors financial markets and economic trends of relevance to Danske Bank Markets and its clients.

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