Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

NEWS

By Sudip Kar-Gupta

(Reuters) -Morgan Stanley and two other investment banks have revised their forecasts for the European Central Bank’s terminal rate – the level at which its key interest rate will peak – to 4% as inflationary pressures weigh.

Data this week showed a surprise surge in underlying inflation across the 20-nation euro zone.

The revisions also come on the heels of remarks by ECB governing council member and Belgian national bank governor Pierre Wunsch on Friday that the ECB could consider raising its key interest rate to as high as 4% if underlying inflation remains persistently high.

BNP Paribas and Barclays joined Morgan Stanley in the upward revisions. Morgan Stanley and BNP Paribas had previously seen the terminal rate at 3.25%. Barclays on Feb.17 had raised its forecast to 3.5%.

The ECB has raised rates to 2.5% from a record low of -0.5% in July 2022.

Barclays said in a note to clients that it expects 50 basis point rate increases in March and May, and 25 basis point rises in June and July.

JP Morgan this week raised its forecast for the terminal rate to 3.75% from 3.50%.

(Reporting by Sudip Kar-Gupta in Paris, Alun John and Sam Indyk in London; Editing by Edwina Gibbs)

 

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts