ECB June rate hike nearly certain but July move seen as premature, sources say
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The ECB is set to raise rates on June 11 but will signal caution on any July follow-up, four sources told Reuters, as analysts at Deutsche Bank forecast quarter-point hikes in June and September taking rates to 2.50%. Summary: Per Reuters reporting citing four ECB sources, and De
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One more rate hike to go for the ECB?
ECB June hike near-certain as Middle East energy shock forces policymakers' hand
The ECB is poised for a rate hike in June, driven by external pressures from the Middle East energy crisis, which has shifted the focus from domestic inflation to imported costs. Per the full note [source], analysts now expect two 25 basis point hikes, bringing the policy rate to a neutral range of 1.75% to 2.5%. This marks a significant shift in market sentiment, as the ECB grapples with the dual challenge of managing inflation expectations while safeguarding economic growth. With the geopolitical landscape evolving, the market is closely watching for any signs of further escalation that could impact European energy supplies.