world-economy

ECB Signals Two Rate Increases in 2026 Amid Inflation Pressures

The European Central Bank plans to raise interest rates twice this year as inflationary pressures mount, according to a recent economist survey. The central bank is expected to implement quarter-point hikes in June and September, with the deposit rate currently at 2%. The dual increases align with market expectations for multiple moves throughout 2026. The inflation spike has been attributed to geopolitical tensions, including ongoing conflict in Iran. The survey results, conducted May 4-7, represent a shift from previous forecasts that anticipated only a single rate increase. This marks a significant adjustment to the ECB's monetary policy stance as it manages price pressures across the eurozone.