What is the neutral interest rate level in the euro zone?
We seek to determine up to what level the ECB can hike its interest rates. To this end, we have to identify the neutral interest rate level in the euro zone by looking at: The trend in potential growth; The equilibrium between investment and savings. We can then estimate that the neutral interest rate is currently around 1.1%.
Provider
Natixis
Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.