Today, the big surprise was lower inflation in Germany, although the sizable drop was due to a one-off in energy markets. Of course, the peak of inflation may be behind us and inflation should fall, also due to the fact that gas prices have returned to near the minimum levels of last year.
A very interesting statement was made by Kazaks from the ECB, who last year was the first to signal the possibility of a hike from the ECB. He indicated that he expected two strong hikes at the next two meetings, and most likely a subsequent reduction in the scale of increases. The euro is not reacting as Kazaks basically confirms 100 bp hikes in the first quarter of this year. On the other hand, if inflation surprises with larger declines, the ECB's withdrawal of further hikes after 2 more meetings cannot be ruled out.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
The euro is not reacting, although Kazaks reports possible smaller hikes after Q1 2023. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
