Deutsche Bank says monetary policy impact transmitting more rapidly in Europe than the US

<p>Via Seeking Alpha, this from Deutsche Bank.</p><ul><li> believes monetary policy might be transmitting more rapidly in Europe than in the U.S.
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"Around 70% of Eurozone business debt is bank based and therefore far more likely to be variable rate, vs. only c.25% in the U.S. </li><li>U.S. business debt is more likely to be fixed rate, with the vast majority financed via the longer-tenor investment-grade and high-yield bond markets"</li><li>European corporate net interest payments are rising sharply in contrast to a surprise decline in the U.S." </li></ul><p>DB were expecting an 'on hold' ECB meeting this week. The note cited by Seeking Alpha is from Monday so I am not sure if DB have changed their mind after the news earlier:</p><ul><li><a href="https://www.forexlive.com/centralbank/more-on-the-apparent-leak-of-an-ecb-rate-hike-coming-on-thursday-20230912/" target="_blank" rel="follow" data-article-link="true">More on the apparent leak of an ECB rate hike coming on Thursday</a></li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.