All eyes will be on the European Central Bank’s monetary policy meeting, which is due to take place later today.
Officials are set to end the ECB’s bond buying programme and pave the way for interest rate hikes at subsequent meetings, including the next meeting in July. This is to tackle high inflation, which came in at 8.1% year-on-year in May. The markets are expecting ‘hawkish’ rhetoric from officials later today and the euro could be impacted.
The British Chambers of Commerce’s latest economic forecast predicts that the UK economy will not grow in quarter two and three of this year and could contract in quarter four. It cites a drop in business investment and high inflation as points of concern.
In the US, the markets await the latest inflation data, which will be released tomorrow.
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