ECB Watch: Lively Liftoff

The ECB has initiated a rate hiking cycle with a 25bp increase, signaling further tightening due to persistent inflation forecasts. Nordea expects a total of four hikes, bringing the deposit rate to 3% by October.

Key Takeaways

• 1.The ECB raised interest rates by 25bp and intends to hike further to combat persistent above-target inflation.
• 2.Nordea forecasts a total of four rate hikes, with the deposit rate reaching 3% by the October meeting.
• 3.ECB inflation forecasts were revised upward for 2026 and 2027, signaling persistent price pressures.

Table of Contents

• ECB Watch: Lively liftoff
• Projections support further rate hikes
• The ECB now sees inflation clearly above the target in 2026 and 2027
• DISCLAIMER