Deutsche now not sees any extra charge cuts by the ECB, subsequent transfer to be a charge hike as a substitute

For some context, Deutsche had beforehand pinned the ECB to chop charges subsequent in September whereas seeing a terminal charge of 1.50%. Nevertheless, they did notice earlier than this that “the dangers in opposition to our long-held 1.50% baseline have been constructing” and that there are “non-negligible dangers that the ECB easing cycle
stops at 1.75% and even 2.00%”.

So, that appears to be what’s happening right here. Deutsche now sees a charge hike because the ECB’s subsequent transfer however that can solely come on the finish of 2026.

This text was written by Justin Low at investinglive.com.