Goldman, BofA Expect 75 Basis-Point ECB Rate Hike

The video discusses inflation trends, with a focus on predictions by major banks like Bank of America and Goldman Sachs, which foresee a 75 basis point hike. Despite falling oil prices, inflation remains high, prompting hawkish commentary from the ECB. The Governing Council is considering significant rate hikes, influenced by the Federal Reserve's actions and Jay Powell's clear messaging at Jackson Hole. The strategy is to frontload hikes to manage inflation expectations effectively.

What is the predicted basis point hike by major banks for next week?

• 25 basis points

• 100 basis points

• 75 basis points

• 50 basis points

What was the Euro area inflation rate in August?

• 10.2%

• 7.8%

• 9.1%

• 8.5%

How many ECB Governing Council members are considering a rate hike larger than half a point?

• Seven

• Six

• Five

• Four

What is the chance of a 75 basis point hike according to money markets?

• 40%

• 50%

• 60%

• 70%

What is the strategy of the Hawks regarding interest rate hikes?

• Reduce the hikes

• Frontload the hikes

• Delay the hikes

• Eliminate the hikes