ECB Rate Hike Expected as Economists Predict 25bps Increase

57 out of 69 economists polled by Reuters believe that the European Central Bank (ECB) will increase its deposit rates by 25 basis points to 2.50% in September.

This prediction is based on a recent poll conducted by Reuters, which also found that 55 out of 69 economists expect the ECB's deposit rate to remain at 2.50% by the end of 2026.

The ECB's primary mandate is to maintain price stability, with inflation targeting around 2%. One way it achieves this goal is through interest rates, which can influence the value of the Euro.