On May 5, Jussi Hiljanen, chief euro and dollar interest rate strategist at SEAS Bank, Sweden, said in a report that the European Central Bank will increase interest rates twice at its June and July meetings, each by 25 basis points , as core inflation is not expected to start falling until after the summer.
“By the time of the September meeting, the ECB may have received enough evidence that inflationary pressures have finally started to subside and that no further rate hikes will be required after July,” he said.
Hiljanen expects the ECB to start cutting policy rates in June 2024, later than market expectations in February next year.