Central Banks
ECB Rates Seen Hitting Peak of 3.25% Before Cut in July
- Terminal rate to be reached in May, Bloomberg poll predicts
- Officials say lowering borrowing costs in 2023 is unlikely
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The European Central Bank’s battle with inflation may end within half a year as policy makers begin to reverse rate hikes as soon as July, according to economists polled by Bloomberg.
The deposit rate will be raised to a peak of 3.25% — from its current level of 2% in three steps. The survey shows two half-point hikes at the February and March meetings, followed by a 25 basis-point increase in May or June. The median analyst prediction then envisages cutting the rate back to 3% at the start of the third quarter.