Fed and ECB will stick to their guns in 2019

The monetary policy decisions taken by the Fed and the ECB in 2018 were exactly as predicted by BayernLB Research. The general consensus, however, had expected the Fed to be less resolute and the ECB more pro-active. This pattern is set to continue in 2019, when we expect two further Fed interest rate hikes and no increases in interest rates by the ECB.