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ECB President Christine Lagarde has said the latest rate decision will be made based on available data, a switch from the last nine meetings when rate hikes were signaled ahead of time. But Valli added that it was “a very close call.”Market indicators of future rate moves show many are leaning against an ECB rate hike Thursday. They are betting that the U.S. Federal Reserve might manage a “soft landing” by finishing its rate hikes without pushing the economy into a downturn. Economists and investors generally expect the Fed to skip a rate hike at its meeting next week, but it could increase again in November. The flip side is that rate hikes can hurt economic growth if they're overdone.
Persons: Christine Lagarde, Marco Valli, Valli, Klaas Knot Organizations: European Central Bank, ECB, Federal Reserve, UniCredit Bank, Services, U.S . Federal Reserve, Fed, Bank of Locations: FRANKFURT, Germany, Milan, France, Spain, Italy, Europe's, Europe, China, U.S, Central, Ukraine, Bank of England
Unicredit: 2023 to be dominated by disinflation
  + stars: | 2022-11-28 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailUnicredit: 2023 to be dominated by disinflationMarco Valli, chief European economist at Unicredit, discusses the lender's outlook for 2023, making his case for why the year is likely to be more about disinflation in Europe and the U.S. than strong recessions.
The euro zone economy is heading towards a recession, according to several economists. Daniel Roland | Afp | Getty ImagesThe euro zone is expected to plunge into recession in the coming months with economists warning "it will not be shallow." The 19-member zone that shares the euro currency has been under significant pressure since Russia's unprovoked invasion of Ukraine in February. Speaking earlier this month, ECB President Christine Lagarde highlighted that "the risk of recession has increased." Gas storageEven if the euro zone emerges out of recession in the first quarter of next year, economists say the subsequent months will still be hard.
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