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IMF expects at least one more 25 bps ECB rate hike in 2026

First reported · Updated · 1 source: Reuters

What happened

The IMF expects at least one more 25 bps ECB rate hike in 2026. This is the latest development from the IMF's outlook on ECB policy.

What it means for markets

This expectation supports the euro and could pressure European bonds, as further tightening signals continued inflation concerns. A change in ECB guidance or data would shift the outlook.

AssetExpectedMove since first report
Euro FXE Expected rate hike supports euro vs dollar
▲ Up
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Europe stocks VGK Tightening may slow European growth
▼ Down
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What to watch

  • ECB policy meeting decisions
  • Eurozone inflation data

Source timeline

  1. Reuters IMF expects at least one more 25 bps ECB rate hike in 2026

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