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“A dove among hawks” – Anna Stupnytska, Fidelity International on ECB meeting

Photo of Anna Stupnytska.

 Anna Stupnytska(pictured), global macro economist at Fidelity International, comments on the outcomes of today’s ECB meeting:

“The ECB took no policy action at its February meeting, in line with market expectations. With 2 rate hikes from the Bank of England already announced and the Fed poised to kick off its tightening cycle as soon as March, the ECB is facing pressure to communicate its plans for policy normalisation. While sticking to its dovish message for now, the ECB is the main central bank that has the potential to spring a hawkish surprise later in the year, as higher and stickier inflation will likely give hawks the upper hand. While we expect no rate hikes for 2022, we believe the ECB will start preparing markets for the first rate hike to come in 2023, potentially as soon as the March meeting, by laying the ground for ceasing asset purchases at the end of this year and revising its medium-term inflation forecasts to a target of 2%.”

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