"A 25 basis point rate hike looks like a done deal for next week's meeting," said Carsten Brzeski, global head of macro at ING. That would take it to a terminal rate of 3.75%, in line with market expectations. The ECB slowed the pace of its rate rises to 25 basis points at its May meeting after a flurry of 75 and 50 basis point moves.Ībout three-quarters of economists, 43 of 59, forecast another 25 basis point rate hike in July, a stance hardly changed from a May poll.
The central bank is forecast to raise its deposit rate again by a quarter percentage point on June 15 to 3.50%, according to all 59 economists polled in the latest Reuters survey. Price pressures and inflation expectations have moderated, but not by enough to deter the ECB from continuing its most aggressive tightening cycle on record.ĮCB President Christine Lagarde said on Monday it was too early to call a peak in core inflation and reaffirmed rates would need to be increased again. Still, both economies are expected to rebound this quarter and the euro zone to grow 0.2% in each quarter for the rest of the year, the poll showed. BENGALURU, June 8 (Reuters) - The European Central Bank will hike its key interest rates by 25 basis points on June 15 and again in July before pausing for the rest of the year as inflation remains sticky, according to a clear majority of economists polled by Reuters.Īfter a combined 375 basis points of hikes over the past year, economic activity in the 20-member bloc has slowed, with Europe's biggest economic engine - Germany - and the euro zone as a whole falling into a winter recession.
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