euro zone

Markets price growing odds ECB will hike rates to 3% by late 2027

Money markets are increasingly wagering on a hawkish European Central Bank, with traders pricing a growing chance that the deposit rate could reach 3% by late 2027 as the U.S.-Iran war sustains energy-driven inflation pressures across the euro zone.

Euro zone bond yields hover near 15-year highs on Iran war inflation fears

Euro zone government bond yields remained near their highest levels in more than 15 years on Monday as investors weighed the risk that a prolonged war in Iran could keep energy prices elevated and reignite inflation across the bloc.

Euro zone inflation expectations fell sharply in June, ECB survey shows

Euro zone consumers cut their near-term inflation expectations last month, encouraged by a temporary peace deal in the Middle East that briefly lowered energy prices, according to an ECB survey released Friday. The data arrived a day after the central…

ECB keeps options open as policymakers warn of fragile euro zone outlook

European Central Bank officials this week outlined a careful approach to further interest rate increases, stressing that the euro zone's economic recovery remains vulnerable even as inflation pressures persist from the Iran war-driven energy shock.

ECB’s Schnabel warns Iran war shock still weighing on euro zone

The euro zone economy has not returned to its pre-war state despite a drop in oil prices, European Central Bank Executive Board member Isabel Schnabel warned on Monday, as core inflation remains elevated weeks after peace efforts in the Middle…

Lagarde says ECB’s June rate hike was data-driven, not precautionary

ECB President Christine Lagarde on Monday pushed back against characterizations of the bank's June rate increase as a pre-emptive move, arguing that the euro zone's improved economic resilience and the ECB's upgraded analytical tools gave policymakers confidence to act on…

Euro zone corporate lending hits 3-year high, ECB data shows

Bank lending to euro zone companies grew at its fastest pace in three years in May, according to European Central Bank data released Monday, a sign that the currency bloc's economy is absorbing higher borrowing costs while credit demand strengthens…

ECB’s Lane warns inflation could stay above 2% ‘for quite some time’

European Central Bank President Christine Lagarde told the European Parliament on Monday that the euro zone is navigating a "middle scenario" on inflation — one that demands measured policy adjustment but not an aggressive tightening campaign. Her remarks came less…

Euro zone yields dip as U.S.-Iran talks ease pressure on ECB

European government bond yields dipped on Monday as signs of progress in weekend peace talks between the United States and Iran eased concerns that diplomatic efforts to end the Middle East conflict were unraveling. But with ECB President Christine Lagarde…

ECB’s Wunsch says July rate hike possible if inflation persists

European Central Bank policymaker Pierre Wunsch said the ECB could raise interest rates again as early as July if inflation in the euro zone continues to spread beyond energy prices, even as the recent U.S.-Iran peace deal has eased some…