6 December 2022 | Other

ECB likely to raise rate by 50 bps in December

According to Governing Council member Gabriel Makhlouf, the European Central Bank is likely to raise borrowing costs by half a point this month. This decision is likely to follow a slowdown in inflation and lower growth.

Makhlouf himself perceives the move as the bare minimum to bring inflation back from its current record highs to the 2% target. However, the ECB Governing Council member also did not rule out a further increase, which will depend on the figures published in December quarterly economic forecasts.

In addition, the head of the Irish central bank said that everyone must prepare for the transition of interest rates to the restrictive level. At the moment it is too early to talk about the final point amid the general uncertainty. 

After the 75 basis point hike, ECB officials seem increasingly determined to lock in a slow rate hike at the upcoming meeting on December 14-15. Makhlouf's comments echoed those of his colleagues. On Sunday, for example, a senior French official, François Villeroy de Galhau, argued for a 50 basis point rate hike.


Company MarketCheese
Period: 14.05.2025 Expectation: 1650 pips
Technical and fundamental background supports AUDCAD
07 May 2025 77
Elena_Dorokhina
Elena_Dorokhina

Listed among the best MarketCheese authors
1st in the segment "Currencies"
Period: 08.05.2025 Expectation: 550 pips
EURUSD to drop to 1.13000
07 May 2025 52
Period: 13.05.2025 Expectation: 240 pips
Brent crude price rebound to continue up to 65
07 May 2025 69
Period: 14.05.2025 Expectation: 1000 pips
Buying GBPUSD amid trade talks and weaker dollar with target at 1.344
07 May 2025 34
Period: 12.05.2025 Expectation: 1500 pips
USDJPY rebound fades ahead of Fed meeting
06 May 2025 69
Period: 30.05.2025 Expectation: 975 pips
Natural gas maintains upside potential within megaphone pattern
06 May 2025 75
Go to forecasts