China EV investigation, ECB done with hikes

The European Commission’s decision to launch an investigation into Chinese EV subsidies underlines policymakers’ resolve to slow China’s rapid ascent in the market. But any measures taken are unlikely to prevent European automakers from gradually losing market share. Meanwhile, we continue to think that ECB rates are now at their peak, despite some hawkish leaks following this week’s meeting. Next week, we expect the SNB, Norges Bank and Riksbank to follow in the ECB’s footsteps and hike rates by 25bp one last time in this cycle.