Analyst: ECB to Raise Rates in June, Reverse Policy Direction by 2027

On April 24, analysts indicated that the European Central Bank (ECB) is expected to raise interest rates once in June in response to the situation in Iran, and then reverse this action next year to safeguard economic growth. In a survey conducted by the institution, all but one respondent believed that the ECB would keep the deposit rate unchanged at 2% on April 30, but would raise it by 25 basis points in the subsequent meeting, as new forecasts will more clearly illustrate the impact of this conflict on the economy. Among those anticipating a rate hike in June, half also expect at least one rate cut by the end of 2027. The median forecast suggests that the deposit rate will return to 2% by September of that year. (Jinshi)

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