The economists polled also shared their perspectives on the likelihood and timing of potential rate hikes. Although ECB President Christine Lagarde has not confirmed that rates have peaked, some analysts believe that the threshold for an additional increase is relatively high. This implies that the current rate of 4.00% might be the final level in this cycle.
While most economists do not view another rate hike as a core scenario, some admit there is a reasonable chance it could occur if strong wage growth and inflation persist until December.
On the topic of potential risks associated with future rate cuts, 23 out of 38 economists who responded to this specific question suggested they might occur earlier than their predictions. These economists believe there is a risk that any rate cuts could take place sooner than currently forecasted.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Source: Economy - investing.com
