Rainer Guntermann: The motivation for the European Central Bank to lower interest rate expectations weakens

Rainer Guntermann from Deutsche Bank stated that the downward adjustment of interest rate expectations by the European Central Bank is losing momentum. Rainer Guntermann pointed out that the official guidance for July was ambiguous, and the European Central Bank did not rule out the possibility of interest rate hikes. The decline in front-end bond yields in the eurozone requires a greater drop in oil prices. According to data from the London Stock Exchange Group, the money market currently reflects expectations of a 17 basis point rate hike by the European Central Bank in September and a 25 basis point rate hike by the end of the year. Rainer Guntermann stated that as numerous European Central Bank officials deliver speeches and the minutes of the June meeting are released, more details will emerge.