ECB Officials Incline Toward June Rate Hike; Market Prices 72% Probability of Three Hikes by Year-End

According to analyst Justin McQueen, ECB officials remain inclined toward a rate hike in June and have not disputed current market pricing, on June 9. Governing Council members believe inflation risks warrant policy adjustment despite broader geopolitical uncertainties. While the central bank deliberately withheld explicit forward guidance, it signaled marginal support: Nagel reiterated a baseline expectation of two hikes; Macruluf acknowledged market pricing for two to three hikes, suggesting tacit acceptance. Markets currently expect three hikes by year-end with 72% probability. The ECB would need to signal more persistent inflation concerns or formally confirm additional hikes on the agenda to drive meaningful hawkish repricing.
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