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Market Expectations of ECB Rate Hikes Aren't Convincing, Commerzbank Says -- Market Talk

Dow Jones03-20 00:30

1630 GMT - European Central Bank President Christine Lagarde didn't appear very decisive in combating the inflation risks stemming from the Middle East war, according to Commerzbank economist Joerg Kraemer. "I am not convinced by the expectations of the futures markets that the ECB will raise its key interest rates as early as June," he says. The hurdle for higher interest rates is higher than anticipated, he says. Kraemer notes that the ECB's commentary following the decision didn't contain a clear statement that it will take decisive action against recently-increased inflation risks. The ECB also still expects an inflation rate of 2.0% again in 2026, and the governing council is dominated by those who prefer looser monetary policy, he says. (edward.frankl@wsj.com)

 

(END) Dow Jones Newswires

March 19, 2026 12:30 ET (16:30 GMT)

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