Nordic SEB Bank: The European Central Bank may consider an interest rate hike option in June

Golden Ten Data reported on March 20 that Jussi Hiljanen, Chief Rate Strategist at Nordea Bank, stated in a report that an ECB rate hike is a risk, but if the Middle East conflict persists, June is a more likely timing. He expects that the market's expectations for an ECB rate hike still tend to be further upward, which will push up the front end of the German bond yield curve. However, to achieve a rate hike in April, energy prices need to remain at current levels (or higher), market inflation expectations need to rise further, and the consumer inflation expectation survey at the end of April needs to show a significant rebound. Nordea Bank expects the two-year German bond yield to rise from Thursday's closing level of 2.585% to around 2.70%-2.80% over the next three months.