Investment Event
ECB’s last hike?
15 September 2023
Key takeaways
- The ECB increased the deposit rate by 25bps to 4.00 per cent at its September meeting
- The ECB largely indicated that rates are likely at their peak with the focus switching to how long rates stay restrictive
- We remain underweight European risk assets with a likely policy-induced recession on the horizon
- High-quality fixed income is the natural asset class in this environment, but we remain cautious on European government bonds amid sticky services inflation