The European Central Bank is widely expected to raise its deposit rate by 25 basis points to 2.5% on Thursday as surging energy prices push eurozone inflation above 3%. While the September hike is largely priced in, markets will focus on the ECBs guidance on further rate increases, updated inflation and growth forecasts, currency-market risks and rising government bond yields.

The ECB plans a second 2026 rate hike, raising its deposit rate to 2.50% as eurozone inflation hits 3.0% amid surging energy prices and

Deutsche Bank has raised its peak ECB interest rate projection to 2.75%, forecasting additional 25 basis point hikes in September and December. Persistent energy risks and…