JPMorgan pushes ECB rate hike forecast to June 2019 after PMI fall

LONDON (Reuters) – JPMorgan (NYSE:) said on Wednesday it has pushed back rate hike expectations from March 2019 to June 2019 after a business survey showed that euro zone economic growth slowed much more sharply than expected this month.

IHS Markit’s Euro Zone Composite Flash Purchasing Managers’ Index (PMI), considered a gauge of economic health, slowed in May to an 18-month low of 54.1 from 55.1, below all forecasts in a Reuters poll, which predicted a reading of 55.0.

JPMorgan said it has also cut its growth forecast for the second quarter of 2018 to 2.5 percent from 3 percent previously.

“The level is still consistent with growth a tick above a 2 percent pace, which is in line with the latest ECB staff forecast. But, the trajectory remains a concern,” analysts for the bank said in a note.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.