Moody's - Gradual rate hikes are unlikely to hurt European corporate profits

Ratings agency Moody's says rising rates in Europe are unlikely to hurt corporate profits and cash flows in the medium term even though the rate hikes may dampen consumer confidence. 

Key points

Rate hikes are expected to be gradual and coincide with strong growth and labor market. 

Rates to approach 1% for the ECB, 2% for BOE and 3% for the US Fed by 2021. 

ECB tapering is expected to be gradual.