ECB inflation estimate raises prospect of earlier rate rise

Ross J Burland FXStreet

The Financial Times recently reported that the European Central Bank expects to hit its elusive 2 per cent inflation target by 2025, according to unpublished internal models that suggest it is on course to raise interest rates in just over two years.

key notes

Unpublished ECB inflation estimate raises the prospect of an earlier rate rise.
The internal model suggests eurozone interest rates could go up in two years, closing the gap with a forecast move by Fed.
European central bank expects to hit its elusive 2 per cent inflation target by 2025.

EUR/USD bid

The euro has found demand on the news in recent trade, thwarting the bear's attempts of a lower low before the close of the day in New York:

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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