ECB to Raise Deposit Rate by 25 Basis Points to 2.25%, DBS Projects on June 11

According to DBS analyst Radhika Rao, the European Central Bank will raise the deposit rate by 25 basis points to 2.25% on June 11. The ECB is expected to maintain a cautious and hawkish policy stance. DBS projects the eurozone economic growth at 1.0% for 2026 and anticipates inflation will rise. Further rate hikes remain possible in the second half, though the ECB will assess each meeting individually while monitoring U.S.-Iran tensions and ceasefire developments.
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