ECB May Start Normalizing Rates in Early 2020, Says UBS’s Wraith

The video discusses the better-than-expected GDP figures for the US and Eurozone, highlighting the implications for economic policy. The Eurozone's growth in Q1 exceeded consensus, suggesting a more stable economic outlook. The ECB is expected to begin a slow process of rate normalization by next year, with policy rates moving towards zero. This has implications for European bond markets, where yields are anticipated to rise as economic concerns ease and sentiment improves.

What was the general consensus about the Eurozone's economic growth in Q1?

• It was not discussed.

• It was worse than expected.

• It was better than expected.

• It remained unchanged.

When is the ECB expected to start the process of rate normalization?

• By the end of this year

• In two years

• Immediately

• By the beginning of next year

What is the expected trend for policy rates in the Eurozone by the middle of next year?

• Rates will be abolished.

• Rates will decrease significantly.

• Rates will remain negative.

• Rates will return to zero.

What is one reason for the expected increase in sovereign yields in core European markets?

• Increased economic worries

• A decrease in sentiment

• A sudden drop in GDP

• The fading of the safe haven bid

What is expected to happen to the yield curve as short end official policy rate expectations ease?

• It will flatten.

• It will become unpredictable.

• It will steepen.

• It will remain unchanged.