ECB Hikes 25bp to 2.25% Upgrades Inflation Projections

The ECB raised its policy rate by 25bp to 2.25% and upgraded its inflation forecasts for 2026-2027. Despite the hike, President Lagarde provided limited forward guidance, stressing data dependence.

Key Takeaways

• 1.The Governing Council raised the policy rate by 25bp to 2.25% as expected.
• 2.Staff projections show downgraded growth for 2026-2027 and upgraded inflation outlooks.
• 3.President Lagarde provided little guidance on the path ahead, emphasizing data dependence.

Table of Contents

• ECB—Hikes 25bp to 2.25%; Upgrades Inflation Projections with Risks to the Upside; Little Guidance on the Path Ahead
• KEY NUMBERS:
• MAIN POINTS:
• The European Economics Team
• Disclosure Appendix