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Lloyds Bank

June 11, 2026

ECB Monetary Policy Update

Macro ThematicRates Govt BondsCommoditiesEnergy

The ECB raised interest rates by 25bp to 2.25%, marking its first hike since 2023. The council signaled a measured tightening path as it revised inflation forecasts higher for 2026-27.

Key Takeaways

  • 1.The ECB raised interest rates by 25 basis points to 2.25%, the first increase since September 2023.
  • 2.Updated Eurosystem projections show upward revisions to both headline and core inflation for 2026-27.
  • 3.The ECB signaled a 'measured' path for future rate hikes, driven by broad-based inflation pressures rather than an aggressive stance.

Table of Contents

  • ECB raises rates and inflation path
  • ECB signals steady tightening path
  • Market Insights Team
  • Disclaimer

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Authors

Nikesh Sawjani

Securities

3-month EURIBORBrent Crude

Themes

Monetary TighteningInflationary Pressures

Regions

EuropeMiddle East