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Investing.com – European markets rose on Monday – IBEX 35, 40, … – at the start of another big data week. Little by little, we are approaching a critical week for central banks, with the expected interest rate decisions of both the European Central Bank (16th March) and the US Federal Reserve on 22nd March.
For the US bank, experts expect an increase of 25 basis points. We will also know the extent to which the US central bank will go in raising the official interest rates, that is, the final interest rate – as the market now expects it to be in the range between 5.25% and 5.50%, which is the hypothesis that we fully agree with, ”said the experts at Link Securities.
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Analysts at Link Securities emphasized that “in principle, we don’t expect Powell to deviate from this scenario when he addresses both houses, although we have to be very careful what he says about the recent behavior of inflation and how he expects inflation to behave in the future. It is also appropriate to know his opinion, again, on the state of the labor market in the United States, which has been confirmed to be much more active than expected at this stage after the strong hikes in the official interest rate, since the tense labor market has important inflationary implications.”
For their part, analysts at Renta4 reiterated their saying, “We hope that he maintains in his speech the need for additional increases in interest rates to control inflation and the need for these increases to continue relying on data.”
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