The European Central Bank is expected to raise interest rates this Thursday to combat inflation, becoming the first major central bank to do so since the energy crisis triggered by the Iran war. Alongside the rate hike, the ECB is anticipated to provide an upward revision of its inflation forecasts. These developments place the stability of the EUR/GBP pair at risk ahead of the crucial June policy meeting.
In a move reflecting policymakers' determination to curb price pressures, the European Central Bank is widely expected to raise interest rates by 25 basis points to 2.25%.
Read the full storyThe ECB is anticipated to implement a rate hike this Thursday while upwardly revising inflation projections to reflect persistent energy costs.
The ECB is anticipated to lead major central banks in raising interest rates to combat surging inflation triggered by the energy crisis and geopolitical instability.
In a significant pivot for Eurozone monetary policy, the European Central Bank is expected to abandon its cautious pause in favor of an active tightening cycle.