Analysts predict the European Central Bank will raise interest rates in June and change policy direction in 2027.

Analysts say that in response to the impact of the Iran war, the European Central Bank is expected to raise interest rates in June, and then cut rates next year to protect economic growth. A survey showed that, except for one person, all respondents expected the European Central Bank to keep the deposit rate at 2% on April 30, and with clearer new forecasts showing the impact of this conflict on the economy, raise rates by 25 basis points at the next meeting. Among those predicting a rate hike in June, half also expect at least one rate cut by the end of 2027. The median forecast shows that by September 2027, the deposit rate will return to 2%.