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Home > Headlines > BNP Paribas expects half a percentage point of ECB hikes in 2026

Headlines

BNP Paribas expects half a percentage point of ECB hikes in 2026

Published by Global Banking and Finance Review

Posted on March 26, 2025

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LONDON (Reuters) - BNP Paribas expects the European Central Bank to hike interest rates by half a percentage point next year as fiscal stimulus boosts price pressures, it said on Wednesday.

The French bank said it had revised up its euro zone growth forecasts by 0.4 percentage points to 1.3% this year and 0.5 percentage points to 1.5% in 2026 due to higher defence and infrastructure spending.

It still expects the ECB to cut its policy rate to 2% in June.

(Reporting by Yoruk Bahceli; editing by Alun John)

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