ING Expects Fed and ECB to Raise Rates Once Each by Year-End

ING now expects the Federal Reserve and the European Central Bank to raise rates once each before the end of this year, reversing its earlier forecast that rates would remain unchanged. According to Odaily, ING economists said recent meetings at the Fed and ECB suggest the two central banks are unlikely to pursue the very loose monetary policy they had previously expected. The economists said both central banks are facing supply-side shocks driven by surging energy prices, although the impact on the broader economy remains limited. They also pointed to memories of the sharp rise in inflation in 2022 and the delayed policy response. The economists expect both central banks could raise rates in December.