The ECB yesterday published the results of its November 2022 Consumer Expectations Survey (CES). Median inflation expectations were lower – providing evidence that rate rises seem to be working on the economy. If this results in terminal rates ending up below market expectations (and staying at high rates for shorter than expected), Euro issuers may consider waiting.

Median inflation expectations for 12 months ahead were 5.0% for November, compared to 5.4% in October. Median inflation expectations for 36 months ahead were 2.9% for November, compared to 3.0% in October.