ECB Watch

Nordea expects the ECB to implement a 25bp rate hike at its June meeting as part of a projected series of four consecutive hikes. Persistent inflation pressures are driving these policy shifts despite a deteriorating GDP growth outlook.

Key Takeaways

• 1.The ECB is expected to raise interest rates by 25bp at the June meeting.
• 2.Nordea forecasts a total of four consecutive 25bp rate hikes, targeting a 3% deposit rate by October 2026.
• 3.Inflation projections for 2026-2027 are expected to be revised upward due to higher oil prices and non-energy commodity costs.

Table of Contents

• ECB Watch: Yikes, it's time for ECB hikes
• Projections will support rate hikes