ECB: Policy response not warranted yet – Rabobank
Rabobank analysts expects the ECB to maintain the deposit rate at 2.00% through 2026, with two rate hikes anticipated in March and June 2027.

Rabobank analysts expects the ECB to maintain the deposit rate at 2.00% through 2026, with two rate hikes anticipated in March and June 2027. Analysts notes that while the Euro's appreciation may prompt verbal intervention, it believes the currency can rise further before necessitating any policy changes.

ECB policy outlook and Euro performance

"We expect the ECB to leave the deposit rate unchanged at 2.00%."

"The burden of proof for any cut or hike is very high. We see the ECB on hold through 2026."

"The euro’s gains may draw some verbal intervention, but we believe the currency can appreciate quite a bit further before it would warrant another cut."

"We still have two rate hikes pencilled in, in March 2027 and June 2027."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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