Big Money Managers See More ECB Rate Hikes Despite Market Doubts
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Some of Europe's biggest money managers believe the ECB will hike interest rates further, contrary to market expectations.
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As a net energy importer, Europe is vulnerable to rising prices if the Middle East crisis escalates.
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Legal & General, Vanguard, and Robeco think markets underestimate the chance of additional ECB tightening.
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Short-dated government bonds are seen as especially vulnerable if the ECB hikes again.
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Factors like rising energy costs may compel the ECB to overshoot on hikes despite economic impact.