ECB expected to raise rates in June and September
A Reuters poll of economists indicates the European Central Bank will raise its deposit rate to 2.25 percent on June 11 to combat persistent inflation. Analysts warn of a potential stagflation scenario as energy prices remain high and economic growth forecasts for the euro zone are downgraded.
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The European Central Bank is set to raise its deposit rate 25 basis points to 2.25% on June 11. A Reuters poll of 80 economists shows 92% expect the hike as policymakers prioritize inflation control over a weakening economy. For investors, the move signals a shift toward risk management as the central bank attempts to anchor price expectations despite stalling growth.
