ECB beyond-September hike talk could push deposit rate above neutral
Market talk: additional ECB rate hikes after Thursday’s widely expected 25-basis-point move would take the deposit rate above the ECB’s neutral-rate estimate range, according to Pimco’s Konstantin Veit.
Any further European Central Bank rate hikes after the widely expected 25-basis-point increase on Thursday would lift the deposit rate above the upper end of the ECB’s neutral-rate estimates, Pimco’s Konstantin Veit said in a note. Pimco expects the ECB to pause beyond September.