ECB defends June rate hike amid persistent inflation
The ECB raised its key interest rates on June 11, a decision that remains correct despite the Iran-US ceasefire deal.
The central bank trimmed its 2026 growth forecast to 0.8% from 0.9% in March, citing a robust financial sector and a labour market near historic low unemployment.
Inflation excluding energy and food has accelerated from 2.2% to 2.5%, driven partly by services prices rising 3.5% against a 3% projection.
Inflation projections stand at 3% for 2026, 2.3% for 2027 and 2% for 2028.