ECB 🇪🇺 RAISES RATES 25 BPS; DEPOSIT RATE TO 2.50%, REFI RATE TO 2.65%
The bank says the Middle East conflict is adding to inflation pressures, with inflation expected to remain above target for an extended period.
New forecasts:
2026 inflation: 3.0% | growth: 0.9%
2027 inflation: 2.5% | growth: 1.4%
2028 inflation: 2.1% | growth: 1.5%
The ECB says inflation risks remain tilted higher while growth risks are to the downside, and it is not pre-committing to a specific rate path.
The euro was little changed after the decision at around $1.1613.
Source: ECB, Reuters