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ECB hikes rates, inflation expectations fall, GDP outlook brightens

6/27/2026

32 5 Full Breakdown

Summary

Story summary

The European Central Bank raised its deposit rate, its first hike since 2023.
Euro zone consumers cut one-year inflation expectations to 3.5% in May from 4.0% in April.
GDP outlook improved to a 1.7% contraction over the next year, better than the 2.2% drop forecast in April.
Unemployment expectations rose to 11.3%.
Markets price one to two more hikes, with the next move not priced until autumn.

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Story summary

The European Central Bank raised its deposit rate, its first hike since 2023.
Euro zone consumers cut one-year inflation expectations to 3.5% in May from 4.0% in April.
GDP outlook improved to a 1.7% contraction over the next year, better than the 2.2% drop forecast in April.
Unemployment expectations rose to 11.3%.
Markets price one to two more hikes, with the next move not priced until autumn.