Nordea Sees High Likelihood of ECB Rate Hike in September

The European Central Bank (ECB) is increasingly likely to raise interest rates at its September meeting, according to Nordea's analysis.

The bank notes that underlying inflation has been slow to cool and negotiated wage growth continues to run above levels consistent with the ECB's 2% target.

A September hike would bring the ECB's deposit rate to 4.00%, the highest level since the euro was introduced, affecting borrowing costs for households and businesses across the 20-nation currency bloc.

Nordea's view adds weight to the hawkish camp, suggesting that the ECB's 'data-dependent' approach may soon tip toward action.