Analysis: The European Central Bank may raise interest rates once or twice this year

Golden Ten Data, March 19 — QUILTER CHEVIOT Head of Fixed Rate Research: Given that there is still room for policy maneuver, it is conceivable that the European Central Bank may implement one or two rate hikes this year to prevent a surge in inflation caused by persistently rising energy prices. The potential challenge lies in determining the appropriate degree of action, as Europe is currently experiencing slow economic growth. Any rise in inflation will naturally suppress economic growth, so the European Central Bank must avoid excessive tightening and should continue to focus on the economic outlook. Of course, with the situation in the Middle East being so volatile, this is indeed very difficult, and therefore the direction of interest rates remains highly uncertain.