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Standard Chartered sees limited odds of an October ECB hike, implying a more dovish ECB and weaker euro versus the dollar.
Standard Chartered Global Research judges that the odds of an October European Central Bank rate hike are limited. The team notes that core inflation in the Euro area has only edged up slightly since January. It also warns that higher yields pose downside risks to both growth and inflation. On that basis, the authors expect the Governing Council to wait for new macroeconomic projections at its December policy meeting before acting.
Standard Chartered sees limited odds of an October ECB hike, implying a more dovish ECB and weaker euro versus the dollar.