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The first rate hike expectation from the European Central Bank in the markets was delayed by 2 months.
In money markets, the ECB is expected to increase the deposit rate by 50 basis points until October. Previously, the expectation was that the first rate hike would be in December. The ECB’s deposit rate is at minus 0.50 percent.
Bank officials are also making statements that there may be an increase in interest rates this year. Finally, ECB Board Member Bostjan Vasle pointed to inflation and stated that he would not exclude an interest rate hike this year. Other Member Robert Holzmann also stated that the bank needs to increase interest rates twice this year in order to expand its room for maneuver.
March inflation in Spain, announced today, reached the highest level in nearly 40 years with 9.8 percent annually due to the increase in fuel and food.
