ECB Likely to Raise Rates This Week, Could Stay on Hold in Rest of 2026

Dow Jones
09/07

0841 GMT - An interest-rate hike by the European Central Bank on Thursday "looks all but locked in," Amundi Investment Institute's Alessia Berardi says in a note. After that, Amundi expects the ECB to stay on hold in the remainder of the year. "We do not see further hikes in 2026 but are watching renewed upside risks from gas and food which could make inflation more entrenched and start to feed second-round effects that are not yet visible," the head of global macroeconomics says. Inflation remains elevated and should stay sticky over the next few months before easing toward the second half of next year, while growth risks and pressure in sovereign yields could keep it from moving too aggressively, Berardi says.

 

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