• Tom Hopkins, Portfolio Manager at BRI Wealth Management


• 14.04.2022 05:30 pm
#WealthManagement

Commenting on EU interest rates remaining the same and the ECB being in a tricky situation, Tom Hopkins, Portfolio Manager at BRI Wealth Management, said: “As expected, the ECB has decided not to raise interest rates. This was predicted by many forecasters, given the ongoing uncertainty of the Ukraine/Russia conflict but also the mirroring the dovish comments from Christine Lagarde last month. The ECB are in a tricky situation as the Eurozone is facing a deteriorating growth outlook due to the war in Ukraine, whilst also trying to tame rampant inflation. The war is likely to mean that rates will stay lower for longer, until the economic consequences of the conflict are fully understood. Lagarde’s message in March was ‘any increase in the ECB policy rate will be gradual and come only after its bond-buying programme ends’ which is estimated to be concluded in Q3, albeit could be revised if the economic outlook continues to deteriorate warranting a change in the programme.”