Next week’s main event is the European Central Bank meeting. Rabobank analysts estimate that interest rates rose by 75 basis points. They see the deposit rate rising to 3 percent by March next year. KEY QUOTES: „The outlook for inflation continues to weaken and underlying pressures are accelerating strongly. This confirms a 75bp gain this month. In addition, it is difficult to see how core inflation could remain below 3% in 202 . „President Lagarde needs to acknowledge higher inflation risks, but we expect her to stick to the story that the ECB is only 'before’ normalization. „ „The 75 basis point rate hike in October appears to be a done deal. We have also raised our expectations for the upcoming meetings and now the deposit rate rises to 3% by March „With a 75bp increase next week and another big hike in December, it is questionable whether the ECB’s tightening cycle can still be considered a 'foregone conclusion’. or if the slogan will suffer the same fate as ’transition’ in the past.” We would argue that this year, but if the ECB sticks to its meeting-by-meeting approach, we do not expect President Lagarde to stop „pre-drafting” for describe next week’s rise.

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