ECB expected to hike by 25 bps – UOB

Lee Sue Ann, Economist at UOB Group, comments on the upcoming ECB gathering.

Key Takeaways

“We are pencilling in a 25bps hike at the May meeting, on the ECB’s willingness to put out fires in banking woes, as well as fresh forecasts confirming that it probably does not think the fight against inflation is over.”

“Further out, even if the ECB were to continue hiking, we think it would be prudent to move in clips of 25bps.”