ECB unlikely to raise interest rates further after the expected 25 bps hike in June – Commerzbank
|In May, Euro area inflation surprised to the downside. Subsequently, economists at Commerzbank expect the ECB to deliver a final 25 basis points hike in June.
Euro area inflation rate drops to 6.1%
In the Euro area, the inflation rate continues to retreat. In May, it fell from 7.0% to 6.1%. Following the marked decline in energy prices, a correction is now also emerging in food prices, which had previously risen sharply.
Even more important from the ECB's point of view, however, is the fact that underlying inflation has probably passed its peak. This supports our expectation that the ECB will raise key interest rates by 25 bps for the last time in June.
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