ECB Seen Holding Rates Next Week, Then Lifting Deposit Rate to 2.5% in September
Updated
Updated · Bloomberg · Jul 18
ECB Seen Holding Rates Next Week, Then Lifting Deposit Rate to 2.5% in September
3 articles · Updated · Bloomberg · Jul 18
Summary
All economists in a Bloomberg survey expect the ECB to leave borrowing costs unchanged at next Thursday’s meeting, signaling a pause rather than an immediate final move.
Most respondents then see a quarter-point increase in September, which would take the deposit rate to 2.5% and likely mark the last hike of the cycle.
September is viewed as the more likely window because policymakers will have fresh quarterly forecasts and more time to assess the inflation outlook.
The expected sequence leaves the ECB balancing caution in the near term with one final tightening step if incoming data support it.