Report published June 12, 2026
RBC Capital Markets: European Economics and Rates Strategy - June 12, 2026
RBC Capital Markets · June 12, 2026
RBC's daily commentary highlights the ECB's hawkish rate hike to 2.25% and potential for further tightening. It also analyzes UK economic data and the political impact of the upcoming Makerfield by-election.
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Finvaulta summarizes RBC Capital Markets's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
Key Takeaways
- 1.The ECB raised its deposit rate to 2.25% and signaled hawkish projections, leading RBC to recommend selling September Euribor straddles.
- 2.UK economic output fell 0.1% in April, largely driven by service sector contractions linked to Middle East conflict-related event cancellations.
- 3.The Makerfield by-election is viewed as a high-stakes event for UK politics with potential leadership implications for the Labour Party.
Table of Contents
- Overnight news
- Data and events
- June ECB review – We’re not at target anymore – more hikes are coming!
- What to Watch For: The Week Ahead in Europe
Report data
Change vs March baseline
| Metric | Estimate | Context |
|---|---|---|
| ECB Deposit Rate | 2.25% | Current deposit rate after hike |
| UK April GDP | -0.1% | Monthly growth |
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European Economics and Rates Strategy is shown in chronological order through this edition, published on June 12, 2026.
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