ECB Likely to Raise Rates on Thursday Amid Middle East Energy Shock, Insight Investment Says

According to Insight Investment analyst Jan Felix Gloeckner, the European Central Bank's rate hike on Thursday (June 12) is now essentially confirmed due to escalating Middle East tensions and prolonged energy disruptions. The senior investment expert noted in a report that ECB staff forecasts may lean toward a more adverse scenario outlined in March, with persistent inflation coupled with slowing economic growth. Given the expected durability of energy shocks, Insight Investment sees potential for a second rate hike later this year, with the central bank likely to maintain policy flexibility in its forward guidance beyond June.
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