Berenberg suggests that the European Central Bank may raise interest rates again starting in mid-2027.

Holger Schmieding from Berenberg stated in a report that the European Central Bank may start raising its key interest rates from mid-2027, while economic growth this year is expected to be slightly higher than the trend growth rate of 1.2%. Following the initial forecast of 1.3% growth earlier this year, with the momentum of German fiscal stimulus measures strengthening, economic growth in the eurozone may accelerate in 2027, reaching a cyclical peak of 1.5%. He stated that this will boost the confidence of businesses and consumers in Germany and some neighboring countries. Schmieding suggests that as a result, the European Central Bank may raise its key interest rates to a neutral level of around 3% in early 2028, which will lead to a cooling off of economic growth in 2028 towards its trend growth rate.