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2026-05-25 16:03:52
[BNP Paribas Analysis: Eurozone Economic Weakness Makes ECB Rate Hike Expectations Seem Overblown] ⑴ Analysts stated in a report that recent data shows the Eurozone economy is fragile, and market expectations for a European Central Bank (ECB) rate hike appear overblown. ⑵ Analysts said, "Current pricing in the ECB remains too aggressive relative to the potential deterioration in the Eurozone's growth outlook." ⑶ The preliminary Eurozone May Purchasing Managers' Index (PMI) released last week was unexpectedly weak, as high oil prices dampened consumer and business confidence. ⑷ Data shows that the Eurozone money market currently prices an 80% probability of a 25 basis point rate hike by the ECB in June and has fully priced in two rate hikes before the end of the year.
