Investors focus on the March EU inflation data: the consumer price index rose from 0.8% to 0.9% MoM and fell from 8.5% to 6.9% YoY. The core index increased from 0.8% to 1.3% MoM, slightly exceeding the forecast of 1.2%, and corrected from 5.6% to 5.7% YoY, which European officials consider the main problem for the economy, to combat which, the European Central Bank (ECB) can maintain the "hawkish" rhetoric. The department's chief economist, Philip Lane, backed the interest rate hike at its next meeting in May but noted that the rate has yet to be determined and could be 25 basis points or more. It will depend on inflation statistics and data on the gross domestic product (GDP), as well as the result of a survey of European banks, which should clarify whether credit conditions in the region are deteriorating.
