IMF forecasts another ECB rate hike in 2026
The International Monetary Fund projects the European Central Bank will implement at least one more rate hike this year. Additional tightening aims to ensure core inflation returns to target by 2028.
The European Central Bank will likely raise interest rates by 25 bps at least one more time this year to combat inflation, the IMF said Friday morning. The forecast follows previous rate hikes of 25 bps in June and September. These earlier moves countered rising inflation driven by surging energy prices resulting from the conflict between United States, Israel, and Iran.
