Bank of America strategists suggest shorting the ECB's front-end interest rate hike expectations. They said that there is currently not much evidence that there is widespread inflationary pressure, and economic resistance in the Eurozone continues to increase, which will limit the ECB's room to raise interest rates. Sfia Salim and Edward Davidson wrote in a research report released on Tuesday: “Although the impact on energy prices continued longer and economic growth was slightly more resilient, the core inflation performance fell short of the ECB's expectations.” “If this round of shocks becomes more and more like traditional energy price shocks, it will be difficult to maintain a tough hawkish stance.”

Bank of America strategists suggest shorting the ECB's front-end interest rate hike expectations. They said that there is currently not much evidence that there is widespread inflationary pressure, and economic resistance in the Eurozone continues to increase, which will limit the ECB's room to raise interest rates. Sfia Salim and Edward Davidson wrote in a research report released on Tuesday: “Although the impact on energy prices continued longer and economic growth was slightly more resilient, the core inflation performance fell short of the ECB's expectations.” “If this round of shocks becomes more and more like traditional energy price shocks, it will be difficult to maintain a tough hawkish stance.”