ECB Economists See Final Hike Next Week, Contradicting Market Bets

Economists surveyed by Bloomberg believe the European Central Bank (ECB) will raise interest rates next week, but only once. In a split from market expectations, respondents think the deposit rate will be increased to 2.5% on Thursday and remain there through 2027.

This view contrasts with traders' predictions of about three more hikes by mid-next year. The survey results suggest that economists expect a single, final hike next week before interest rates stabilize.