The ECB will increase by a half-point in interest rate next week. This is reportedly certain, and the value of the Euro will be affected. This makes the European Central Bank continue hiking to a plateau of 3.5% later this year; at least, that's the prediction of many economists.

Regarding Europe's economic movement, it is stated that it is in a zone of sufficient resilience. Eurozone economy, which was so thought set to plunge into Recession. 

This means that the ECB will push interest rates to higher-than-expected levels and bring energy costs to fall later this year. On the other hand, this is also the headline for the European market.

Following which the movement of the Euro, which has now begun to stabilize, will be disrupted again. Hardline comments provided by ECB Officials said that this was to help the eurozone government push up yields and interest rates.

Meanwhile, many are also focusing on the European economy. Many thought the Recession was over, especially when looking at the movements of the Euro and the European economy these past few days. But experts have other opinions that are also interesting.

The European Central Bank Says that Rate Hikes Will Continue, but not Clear for how Long

Following the debate over the significant value of the Euro, Andrew Kenningham, one of the Eurozone economists at Capital Economics, said:

"With a 50 basis point rate hike at next week's ECB meeting that already looks like a done deal, the main point of interest next week will be any messaging about how and how far rates will rise beyond that,"

"We now think that the resilience of the economy and persistence of core deposit rates by a further 50 basis points in March and 25 basis points at the next two meetings. So this will meet the peak of 3.5%."

On the other hand, ECB Executive Board Member Fabio Panetta said that the central bank should not pre-commit to any specific rate moves before its meeting in March. 

The market has priced a 50 basis points hike for the next two policy meetings, and the ECB must ease it. ECB President Christine Lagarde has also repeatedly said and hopes the European economy can stay the course.

This relates to upcoming rate decisions, but some market watchers are doubtful about the conclusion that the European economy can be in a hawkish stance for longer.

This is even more so because the ECB has entered tightening mode since last year with four rate hikes to control high inflation across the eurozone. These decisions are also related to the primary deposit rate, which will impact future Euro price movements.

"the size of those rate hikes will depend on the inflation outlook. Lower price pressure will probably allow the ECB to hike by 25 basis points rather than 50, especially in May and June," said Francesco Maria di Bella, fixed income strategies at UniCredit, to CNBC.

European Economy Considered Safe from Recession, Various ECB Efforts Considered Successful

Looking at developments and economic activity in Europe this year, it seems that the Eurozone economy has improved quite a bit. Especially after many assumptions that Europe is in a recession zone. It doesn't look like that. Instead, much improvement is happening.

Indeed, the Eurozone economy has not been matched by the return of prices to normal prices, but this is a sign that the Euro is good enough to be used as an investment instrument before it increases again. So, what exactly is the fate of the Euro at this moment?

The Euro has become more stable, and the decline in European inflation evidences this. But this cannot be concluded like that because now the central bank is the centre of attention. Many need to be convinced of the policies taken by the ECB.