Torsten Slok, Chief Economist at Apollo Global Management, sees the European Central Bank potentially raising rates again in September. The call comes after the ECB already hiked its deposit facility rate by 25 basis points to 2.25% on June 11, its first increase since September 2023.
Slok isn’t alone in this view. A Reuters poll conducted on June 3 found that 49 out of 80 economists expected an additional ECB rate hike at the September meeting. That’s over 60% of surveyed economists betting on more tightening before year-end.
The end of easy money in Europe
The June hike marked a decisive shift toward a more hawkish stance, driven largely by inflationary pressures tied to the ongoing Iran conflict. Energy costs, supply chain disruptions, and geopolitical uncertainty have forced the ECB’s hand in ways that seemed unlikely just months ago.
The ECB’s next scheduled meetings are July 23 and September 10. If Slok and the majority of polled economists are right, the September meeting could bring the deposit rate to 2.50%.
