ECB Survey Sees End to Hiking Cycle This Week

The European Central Bank's (ECB) upcoming rate hike is expected to mark the end of its current hiking cycle, according to an ECB Survey. The survey found that all 24 economists participating expect the Governing Council to raise the deposit facility rate by 25 basis points to 2.50% on Thursday, September 10.

With a probability of more than 85% assigned to their base case, these economists believe that this week's increase will be the final one in the current cycle. This expectation comes despite anticipating a higher inflation outlook, with the median respondent expecting inflation to remain above the ECB's target.

The survey's findings suggest that markets have already priced in a 25 basis point increase, so the reaction of the euro and euro-zone rates will likely hinge on the outcome of this week's policy meeting. The Deutsche Bundesbank is hosting the meeting in Berlin.