ECB to hike rates in June as inflation pressures rise
Most economists expect the ECB to raise its deposit rate to 2.25% in June. Analysts predict another hike this year as war-driven energy prices remain high.
The ECB will raise its deposit rate by 25 basis points in June to combat inflation driven by Middle East energy shocks. A Reuters poll of 70 economists shows 85% expect the rate to reach 2.25% next month. Investors face a hawkish shift as policymakers prioritize price stability over fragile 0.1% quarterly growth.
### Energy Shocks Delay Inflation Cooling Consumer price inflation sits more than one percentage point above the 2% target as the regional conflict enters its third month. Brent Crude Oil remains 50% above pre-war levels, trading over $100 per barrel. This persistent energy pressure led economists to upgrade inflation forecasts to 3.2% for the remainder of the year, a revision from last month's projection.
