PARIS, Sept 2 (Reuters) – BNP Paribas said on Friday it expects a three-quarter point rise in rates from the European Central Bank (ECB) next week at its monetary policy meeting.
“With the ‘hawks’ continuing to take over, we expect the ECB to propose a 75 basis point increase at its September 8 meeting,” analysts at the French bank wrote in a note.
“Even though the outlook for growth has deteriorated further, key members of the Governing Council have been insensitive to this. their rise,” they add.
BNP Paribas also expects a significant monetary tightening cycle with rates that could peak at 2% by the end of the first quarter of 2023.
The money markets in the euro area estimated Thursday nearly 80% the probability of a 75 basis point hike in ECB rates. (Yoruk Bahceli report, French version Claude Chendjou, told by Matthieu Protard)