The European Central Bank is widely expected to increase its deposit rate by 25 basis points to 2.50% at the upcoming meeting on September 10. Following this hike, the ECB is anticipated to maintain the rate at this level for an extended period.
According to FX Street (Rabobank), Bas van Geffen of Rabobank projects the ECB’s rate increase and subsequent pause. Similarly, FX Street (Nomura) reports that Nomura’s Global Markets Research team forecasts a 25 basis point hike to 2.50% on September 10, followed by a hold in policy rates.
This anticipated move is closely watched by Japanese investors, as changes in ECB policy can influence the euro-yen exchange rate and impact risk sentiment across both FX and equity markets in Japan.