ING revises its assessment: The Federal Reserve and the European Central Bank may each December raise interest rates once more
BIBIBI
AT A GLANCE
ING expects the Federal Reserve and European Central Bank may December each raise rates once.
Article
【ING: The Federal Reserve and the European Central Bank may raise interest rates at least once more】
ING now expects the Federal Reserve and the European Central Bank to each raise interest rates once more by the end of this year, differing from its previous forecast of keeping rates unchanged. ING economists said in a report that the Federal Reserve meeting on Wednesday and the European Central Bank meeting last week indicate that the two central banks are unlikely to adopt the very accommodative monetary policies previously expected. The economists noted that both central banks are currently facing supply-side shocks triggered by surging energy prices, although the impact on the overall economy remains limited for now; meanwhile, people still remember 2022 the sharp rise in annual inflation and the delayed monetary-policy response. Economists expect that both central banks may December raise interest rates.
ING now expects the Federal Reserve and the European Central Bank to each raise interest rates once before the end of this year.
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This forecast differs from its previous expectation of a path with interest rates held unchanged.
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ING economists said that Wednesday's Federal Reserve meeting and last week's European Central Bank meeting show that the two central banks are unlikely to adopt the highly accommodative monetary policies they had previously expected.
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The economists noted that both central banks face a supply-side shock caused by surging energy prices, although the impact on the overall economy remains limited for now.
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Economists expect both central banks may December raise interest rates.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
This is a forecast: ING has changed its previous view that rates would remain unchanged and now believes that both central banks could each raise rates once more.
Why it matters to readers
If the forecast proves correct, the monetary policy paths of the Federal Reserve and the European Central Bank will differ from ING’s previous expectation that rates would remain unchanged.
Beginners should note that this is not a decision already announced by either central bank, but a forecast by ING economists.
Risks and unknowns
The original text does not specify the expected size of the rate increases.
The full text of the relevant report was not provided in the original material, so the complete supporting arguments cannot be verified.
The rate hike has not yet occurred, and the final decision remains uncertain.
The specific years and dates of “this year,” “Wednesday,” “last week,” and “December” cannot be confirmed from the body text alone.
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Related concepts
Interest Rate Hike
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