ECB Set for Final Rate Hike Before Interest Rates Freeze

The European Central Bank (ECB) is expected to increase its deposit rate by 25 basis points to 2.50% in September, according to a Reuters poll of economists.

This would mark the ECB's shortest tightening cycle since 2011, with a total of just one interest rate hike.

The decision comes as high energy prices continue to push inflation above the ECB's 2% target, with euro zone inflation rising to 2.9% last month.

Analysts have also raised their forecast for euro zone GDP growth in 2026, predicting a 0.8% increase compared to an initial estimate of 0.5%.