ECB Raises Rates, Signals Two More Hikes Ahead
The European Central Bank (ECB) delivered a 25bp rate hike and signaled a bias towards further tightening, according to Nordea analysts Jan von Gerich and Tuuli Koivu.
Nordea expects two more 25bp hikes in December and March 2027, acknowledging upside risks from Middle East tensions and energy prices and downside risks to growth.
The ECB's baseline forecasts show Eurozone inflation above target through 2028, indicating a bias towards further rate hikes.