Deutsche Bank Sees ECB Hiking Rates Twice More

Deutsche Bank Research is predicting that the European Central Bank (ECB) will raise interest rates twice more in 2026, bringing the deposit rate to 2.75% by December.

The bank's reasoning is based on high energy costs, which are expected to keep inflation from cooling down quickly. This means that the ECB may need to take further action to control inflation and prevent it from rising above its target.

A 2.75% deposit rate would have significant implications for borrowing costs in the eurozone, making it more expensive for businesses and individuals to borrow money. Variable-rate loans and mortgages would likely be repriced, leading to higher monthly payments and interest bills.