A Bloomberg survey of economists sees the European Central Bank (ECB) President Mario Draghi raising the deposit rate by September 2019, just before his terms expires in October 2019.
Key Findings:
“With asset purchases about to conclude in December, most respondents predict the European Central Bank president will increase the deposit rate by September next year, to minus 0.2 percent from minus 0.4 percent.
That’s earlier than market pricing for a hike of similar magnitude in the first quarter of 2020, though the economists acknowledge the challenges ahead.
They see the biggest risks as trade protectionism and the possibility that Italy’s populist government, planning a high-spending budget that could increase the nation’s debt load, will precipitate a financial crisis.”
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