Capital.com analyst Daniela Hathorn said the ECB delivered a widely expected 25 bps rate hike but its policy statement highlighted a tension between persistently high inflation and slowing growth. The bank raised inflation forecasts while cutting GDP growth projections for this year and next. Hathorn said inflation remains too high to ignore, yet growth is too weak, leaving the ECB to balance the risks of acting too late against being overly aggressive.

2026-06-11

Capital.com analyst Daniela Hathorn said the ECB delivered a widely expected 25 bps rate hike but its policy statement highlighted a tension between persistently high inflation and slowing growth. The bank raised inflation forecasts while cutting GDP growth projections for this year and next. Hathorn said inflation remains too high to ignore, yet growth is too weak, leaving the ECB to balance the risks of acting too late against being overly aggressive.