European Central Bank officials see the case for a June rate hike as “nearly
sealed” amid persistent energy-driven inflation near 3%, according to sources
familiar with the discussions. Policymakers are expected to avoid signaling a
July follow-up increase, citing weaker growth and uncertainty over the inflation
outlook. Sources said the ECB could wait until September for updated projections
Unless inflation deteriorates sharply. Markets currently price in three ECB rate
hikes over the next year, with the first fully priced by July.
