By Scott Kanosky
Investing.com – The number of interest rate increases from the European Central Bank will depend on upcoming economic data, according to ECB Vice President Luis de Guindos.
Speaking at a financial event reported by Reuters, de Guindos added that there will be “an impact on consumer spending and investment by businesses” as the European Central Bank raises borrowing costs in its ongoing attempt to cool hyperinflation.
Analysts expect the European Central Bank to move the deposit rate to 2% by the end of the year from its current level of 1.25%.
Philip Lane, chief economist at the European Central Bank, previously indicated over the weekend that there could be “several” more price hikes over the remainder of 2022 and into next year.
Elsewhere on Monday, the Bundesbank warned that German growth is already faltering and may contract further in the winter months. But the Bundesbank said it does not expect Europe’s largest economy to slide 3.2% in 2023 as it forecast in June.