The ECB is expected to keep interest rates unchanged at 2.25% during its July 23 meeting, while maintaining the option for a 25bp hike in September. Recent data shows tighter borrowing conditions in the Euro area, with 42% of firms reporting higher loan rates in Q2. While analysts generally expect rates to remain steady this Thursday, some experts suggest that a surprise rate hike cannot be entirely ruled out.
Core EMU bond yields reached long-term highs as market participants position for the ECB meeting amid expectations of sustained tight monetary policy.
Read the full storyAnalysts anticipate a rate hold on Thursday, though ING warns a surprise hike remains possible amid persistent inflation concerns.
The Q2 SAFE survey reveals a significant rise in corporate borrowing costs, with 42% of firms reporting higher bank rates amid ongoing credit tightening.
Analysts expect the ECB to maintain rates at 2.25% on July 23, while President Lagarde is likely to signal flexibility for a potential 25bp hike in September.