ECB to raise its deposit rate to 2.50%, but with cuts by the end of 2023 – ABN Amro

Economists at ABN Amro have revised their ECB view. They now see the terminal rate higher, but with cuts by the end of 2023.

ECB to start cutting rates in the final quarter of 2023

“We now expect the ECB to raise its deposit rate to 2.50% by the end of 2023Q1. Previously, our base case was for the ECB to hike to a peak level of 2.0% in December 2022 and, subsequently, pause.”

“We now also expect the central bank to start cutting rates again in the final quarter of 2023.”