European Central Bank announces plans to increase interest rates by 50 basis points in February and March

l Bank set to raise interest rates by 50 basis points in both February and March

The European Central Bank (ECB) is expected to raise interest rates by 50 basis points in February and March, and continue to raise rates in the months that follow. This announcement was made by ECB governing council member, clanot, who also expects more steps to follow in May and June. In a separate interview, not said that it was too early to tell if the ECB would slow down the pace of its rate increases by the summer.

Not is considered a hawk among policy makers, and his comment is seen as a pushback against recent reports that the ECB would scale back to quarter point moves from March. The Euro has reached a nine-month peak due to these developments, and experts believe that a break in the Euro would open the way for a spike top from April last at 1.0936 dollars.

In contrast, Futures have priced out almost any chance that the Federal Reserve (FED) could move by 50 basis points next month and have steadily lowered the likely peak for rates to 4.75 percent. Flash surveys for January manufacturing are due this week, and are forecast to show more improvement in Europe in part thanks to falling energy costs than in the United States.

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