Report: It is expected that the European Central Bank will raise interest rates twice in 2026 and lower them twice in the first half of 2027.

Bjoern Ohl of apoBank stated in a report that the European Central Bank is expected to raise interest rates by 25 basis points this week, followed by another raise in September, bringing the deposit rate to 2.5%. "Since March, the inflation outlook in the Eurozone has significantly worsened due to the Iran war and rising energy prices," the economist said. However, apoBank expects the expected rate hikes for this year to be reversed, with the deposit rate decreasing in two steps from 2.5% to 2% in the first half of 2027. "The background behind this is the expectation that the conflict between the US and Iran will be resolved by then, along with economic slowdown and inflation rates falling to the target level of 2%."