London, Wednesday, 14 December 2022
Investors are still evaluating the outlook for monetary policy and GDP as the euro trades above a six-month high of $1.07.
While maintaining a hawkish stance, the Federal Reserve increased interest rates by 50 basis points, pushing borrowing costs to their highest level since 2017.
Policymakers anticipate that the terminal rate will be around 5.1% next year.
Across spite of some early indications that inflation is falling in the eurozone, it is still uncomfortably high domestically for politicians.
Investors anticipate the ECB to deliver a 50 basis point rate hike on Thursday, despite concerns about an impending recession.
The ECB remains committed to raising interest rates to restrain price growth.
(Report by: The Decision Maker - Finance editors)