The European Central Bank said on Thursday that it "intends" to raise its key interest rates by a quarter basis point in July after policymakers assessed that the three conditions that should be satisfied before the bank starts raising rates have been met.
The central bank also unveiled the latest ECB Staff macroeconomic projections that showed a further upgrade to the euro area inflation outlook and downgrade to the growth forecasts. The bank left the key interest rates unchanged in the June meeting. The main refinancing rate stands at zero, the deposit facility rate at -0.50 percent and the lending rate is at 0.25 percent. The July hike would be the first in 11 years. The Governing Council, led by ECB President Christine Lagarde, expects to raise rates further in September, and that could be a "larger increment" if the medium-term inflation outlook persists or deteriorates, the bank said. Economists are widely expecting a 50 basis points hike in September.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.