Danske Bank forecasts a 25 basis point ECB deposit rate increase on June 11, citing persistent core inflation and rising oil prices.
The European Central Bank is expected to raise its deposit rate by 25 basis points to 2.25% at its June 11 meeting, aligning with market expectations and consensus forecasts. The move follows upside surprises in core inflation and higher oil futures, which have added pressure on the central bank to tighten policy further.
Prior to this, the ECB has maintained a cautious approach, balancing inflation concerns against economic weakness in the Euro area. Market pricing had already reflected a high probability of a June hike, with traders closely monitoring inflation data and energy markets for signals.
The forecast suggests a continued hawkish stance from the ECB, as policymakers weigh inflation risks against slowing growth.