UBS expects the ECB to deliver two 25bp hikes in June and September this year (vs prev. forecast of unchanged)

UBS's revised forecast implies a shift in market expectations regarding ECB monetary policy, now projecting two 25 basis point hikes in June and September. This change suggests increased confidence in the need for tighter monetary policy amidst inflation pressures, which could influence euro appreciation and bond yields as investors recalibrate their positions. Watch for market reactions in both the euro and fixed income as these hikes become more probable.