Markets fully price a 25 basis point hike as focus shifts to ECB guidance on future policy moves.
The European Central Bank is expected to increase its deposit rate by 25 basis points to 2.25% at its June meeting, aligning with market consensus. The move is widely anticipated, with traders now turning attention to signals about the central bank’s next steps.
Prior expectations had already priced in the June hike, leaving little room for surprise. Analysts suggest the ECB’s communication on future rate adjustments will be critical for market direction, particularly amid persistent inflation concerns.
No immediate market reaction was detailed, but traders are likely to scrutinize post-meeting statements for clues on the pace of further tightening.