ECB Set to Lift Deposit Rate 25 Basis Points to 2.25% as Euro Zone Inflation Hits 3.2%
Updated
Updated · CNBC · Jun 10
ECB Set to Lift Deposit Rate 25 Basis Points to 2.25% as Euro Zone Inflation Hits 3.2%
3 articles · Updated · CNBC · Jun 10
Summary
Thursday’s expected move would raise the ECB’s key deposit rate to 2.25%, as policymakers respond to renewed inflation pressure despite weak euro-zone growth.
April data showed headline inflation at 3.2% and core inflation at 2.5%, with energy prices up 10.9% year on year and services costs signaling possible second-round effects.
The inflation threat is tied to the euro zone’s exposure as a major energy importer, with oil prices pushed higher by the Iran war.
ECB staff are widely expected to cut 2026-27 growth forecasts while lifting inflation projections, and markets still price in three more rate increases this year rather than a one-off move.