Inflation forces ECB's hand, signaling more interest rate hikes

Following the European Central Bank's decision to raise interest rates to 2.50%, market expectations and analysts have adjusted to anticipate at least one more hike this year, likely in December. Financial markets are now pricing in additional increases throughout 2027, which is driving up projections for Euribor rates, with the 12-month Euribor expected to reach 3.6% over the coming year.