Analyst: The European Central Bank will raise interest rates in June and will reverse its policy direction by 2027

Golden Finance reports that on April 24th, analysts stated that the European Central Bank will raise interest rates once in June due to the Iran situation, then reverse this move next year to protect economic growth. In a survey of institutions, except for one respondent, all believe that the European Central Bank will keep the deposit rate at 2% on April 30th, but will raise it by 25 basis points at the subsequent meeting because the new forecast will more clearly show the impact of this conflict on the economy. Among those expecting a rate hike in June, half also expect at least one rate cut by the end of 2027. The median forecast shows that the deposit rate will return to 2% in September of that year. (Jin10)