#CPIWatch Continuation of the article:
Summary for investors
The March CPI reading will be an important signal for the markets in the context of interest rates. If inflation remains at the projected level below 2%, the likelihood of further easing of monetary policy by the ECB will increase. Currently, the swap markets are pricing in the stabilization of interest rates for most of 2026 after a series of cuts that brought the deposit rate down to 2.00%.
Summary for investors
The March CPI reading will be an important signal for the markets in the context of interest rates. If inflation remains at the projected level below 2%, the likelihood of further easing of monetary policy by the ECB will increase. Currently, the swap markets are pricing in the stabilization of interest rates for most of 2026 after a series of cuts that brought the deposit rate down to 2.00%.