Skip to main content

The European Central Bank hikes rates by 75 basis points

The hike comes after eurozone inflation exceeded expectations in September.

27 October 2022

With eurozone inflation last month hitting close to five times the European Central Bank (ECB) target at 9.9%, it was all but guaranteed that it would hike aggressively by 75 basis points (bps) today, doubling the deposit facility rate to 1.5%. In addition, its accompanying statement committed to raising rates further at future meetings given that inflation remains far too high. Where the ECB terminal rate gets to, perhaps a year from now, is still dependent on underlying inflation so guesstimating what that will be is likely a fool’s errand. Markets, for their part at least, are pricing in an almost doubling in rates from here.

Important legal information
The information in this document is given for information purposes only and does not qualify as investment advice. Opinions and assessments contained in this document may change and reflect the point of view of GAM in the current economic environment. No liability shall be accepted for the accuracy and completeness of the information. Past performance is not an indicator for the current or future development.

Charles Hepworth

Investment Director
My Insights

Active Thinking

Eurozone inflation eases in February

Charles Hepworth

US Core PCE rises in line with forecasts

Charles Hepworth

Fed wary of cutting US rates too quickly

Charles Hepworth

Charles Hepworth Blog