Now: July will likely be the Month

The president of the European Central Bank, Christine Lagarde, in her statement mention that this July will be the month that ECB will hike their interest rate after a decade without any interest rate raise.

The expectation of the hike will be 50 basis points, but Lagarde said that it will not be that much. This rate hike become more certain after the CPI YoY last month reach 7.5%. This is actually a good change for the ECB as they have been fighting low inflation rate for more than a decade.

So far the rate hike in the July is pretty much confirm, the only concern is that the consumer confidence is pretty weak at the moment but with the activity data still holding on the level, there is little to non-existence the after shock to the economy growth from the rate hike.