ECB Expected to Raise Rates Again as Inflation and Growth Soar

According to Brown Brothers Harriman's (BBH) Elias Haddad, the European Central Bank (ECB) is expected to deliver another 25 bps hike this week, bringing the policy rate to 2.50%.

This decision is supported by above-target Eurozone inflation and a firmer growth outlook, giving the ECB scope to raise rates further.

Haddad notes that the swaps curve fully prices in ECB rates at 3.00% over the next twelve months, which he sees as EUR supportive.