ECB Expected to Hike Rates Twice in 2026 Amid Hawkish Shift in Policy Rhetoric

Financial analysts have revised their outlook for the European Central Bank (ECB), now anticipating two consecutive rate hikes in the second quarter of 2026. According to recent forecasts, the ECB is expected to deliver 25 basis point increases in both April and June 2026, bringing the deposit rate to 2.50%. This shift follows increasingly hawkish rhetoric from ECB Governing Council members, which contrasts with the more cautious stance previously signaled by President Christine Lagarde. The revised projections are largely driven by persistent inflationary pressures and the ongoing impact of the energy shock on the Eurozone economy. Market participants are closely monitoring these developments as they provide a new catalyst for Euro strength against major currencies. While the energy crisis remains a concern, the specific timeline for policy tightening offers a clearer path for the central bank's monetary trajectory.

Sources:actionforex.cominvesting.comprivatebank.jpmorgan.comecb.europa.eunbb.beaa.com.trbinance.com