ECB Hikes and Will Again Soon

The ECB hiked rates by 25bps to 2.25% and signaled further tightening due to persistent inflation pressures and elevated energy costs. The central bank revised its inflation outlook upward for 2026-2028.

Key Takeaways

• 1.The ECB raised its deposit facility rate by 25bps to 2.25% and signaled further hikes ahead.
• 2.ECB inflation forecasts for 2027 were revised upward, with core inflation lifted by 0.3ppts to 2.5%.
• 3.Markets are pricing in a cumulative 42bps in additional ECB rate hikes by year-end.

Table of Contents

• ECB Hikes and Will Again Soon
• Introduction