ECB Set to Raise Rates by 25 Basis Points Next Week, Leading G7 Policy Tightening

According to Jin10, the European Central Bank is expected to raise rates by 25 basis points next week on June 7, becoming the first major G7 central bank to tighten policy amid inflation pressures from the Iran conflict. The market anticipates at least one additional rate hike by year-end. In contrast, the Bank of Canada may hold rates steady, while the U.S. Federal Reserve and Bank of England are expected to remain on hold this month as they assess the impact of the Iran situation. ECB officials aim to prevent inflation from becoming entrenched in the eurozone, though the rate increase will likely weigh further on the already weakening economy.
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