The European Central Bank is expected to raise interest rates by 25 basis points next week as the war in Iran adds to global inflation pressures, potentially making it the first major G7 central bank to tighten monetary policy.
According to Jin10, markets also expect at least one additional rate increase later this year.
In contrast, the Bank of Canada may keep rates unchanged, while the U.S. Federal Reserve and the Bank of England are expected to hold policy steady this month as they assess the impact of the Iran conflict.
ECB officials aim to prevent euro zone inflation from becoming entrenched, though higher rates are expected to further weigh on an already weak economy. ECB President Christine Lagarde may provide clearer guidance on next steps at a post-decision press conference.
The ECB is also set to release its quarterly economic forecasts, including scenarios assessing how the energy shock could affect the regional economy in different ways.
European Central Bank Expected To Raise Rates 25 Basis Points Next Week
2026-06-07 01:06:56
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