Traders reduce bets on ECB rate hikes, now expect just 40 basis points of increases in 2026

European Central Bank faces pressure for further rate hikes as IMF calls for 50 more basis points

ECB raised deposit rate to 2.25%; IMF warns 50 more basis points needed to contain energy-driven inflation now above target. Rising rates will compress IT capex budgets and valuations for European tech, signaling slower hiring and tighter M&A conditions ahead.