ECB Set for June Rate Hike as Inflation Near 3%, July Move Uncertain
The European Central Bank is close to sealing a June rate hike as the inflation outlook moves toward an adverse scenario, with persistent energy-driven inflation near 3%, well above its 2% target, according to sources.
Officials are expected to avoid committing to a July follow-up, citing weak growth, uncertain energy prices and limited signs of second-round inflation effects. While markets are pricing multiple future hikes, policymakers see scope to pause after June and reassess in September, depending on inflation and geopolitical developments. Pierre Wunsch separately said there was a high probability that the ECB would raise borrowing costs next month if the Iran war did not end in the meantime.
From the sources (4 posts)
@businessThere’s a high probability that the ECB will raise borrowing costs next month if the Iran war doesn’t end in the meantime, according to Pierre Wunsch
@deitaoneECB RATE HIKE VERY LIKELY IN JUNE AS INFLATION OUTLOOK MOVING TOWARDS ADVERSE SCENARIO, SOURCES SAY
@financialjuice🔴An ECB rate hike is very likely in June as the inflation outlook is moving towards the adverse scenario - Sources.
@deitaone🇪🇺ECB SET FOR JUNE HIKE, JULY MOVE UNCERTAIN Sources say the European Central Bank is close to sealing a June rate hike decision, driven by persistent energy-driven inflation near 3%, well above its 2% target. However, officials are expec