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Only 7% of the respondents anticipate that rates will change by the end of 2026, and less than one-third expect any changes by the end of 2027.
The analysts' prediction does not match what investors expect: they anticipate a single interest rate increase of 0.25 percentage points by July and estimate there is about a 66% likelihood of another rate hike by the end of December.
The current deposit rate is 2% per year, the main refinancing operations rate is 2.15%, and the margin lending rate is 2.4%. The European Central Bank is set to hold its upcoming meeting in the coming week.
Earlier this week, ECB President Christine Lagarde said the ECB will not let military actions in the Middle East cause an inflation problem in the eurozone, just like what happened at the beginning of the Russia-Ukraine conflict.
Bill Diviney, a senior eurozone economist at ABN Amro, stated that it is too early to determine the full impact of the conflict. He added that ECB policymakers will emphasize their close watch on inflation and will make it clear they are prepared to act if needed.
According to a recent survey conducted by Bloomberg, about 80% of economists think that the next interest rate adjustment in the eurozone will involve an increase, which is higher than the 59% who held that view in the earlier survey. Furthermore, almost 60% of the respondents mentioned a rise in inflationary risks.
source: bloomberg.com
The analysts' prediction does not match what investors expect: they anticipate a single interest rate increase of 0.25 percentage points by July and estimate there is about a 66% likelihood of another rate hike by the end of December.
The current deposit rate is 2% per year, the main refinancing operations rate is 2.15%, and the margin lending rate is 2.4%. The European Central Bank is set to hold its upcoming meeting in the coming week.
Earlier this week, ECB President Christine Lagarde said the ECB will not let military actions in the Middle East cause an inflation problem in the eurozone, just like what happened at the beginning of the Russia-Ukraine conflict.
Bill Diviney, a senior eurozone economist at ABN Amro, stated that it is too early to determine the full impact of the conflict. He added that ECB policymakers will emphasize their close watch on inflation and will make it clear they are prepared to act if needed.
According to a recent survey conducted by Bloomberg, about 80% of economists think that the next interest rate adjustment in the eurozone will involve an increase, which is higher than the 59% who held that view in the earlier survey. Furthermore, almost 60% of the respondents mentioned a rise in inflationary risks.
source: bloomberg.com
