ECB set to raise rates for first time since 2023 as euro strengthens against muted dollar

The European Central Bank is expected to raise its deposit rate by 25 basis points to 2.25% on June 11, marking its first rate hike since 2023 amid rising eurozone inflation above 3% driven by energy price surges. Over 90% of economists polled by Reuters anticipate the move, with futures indicating nearly 100% probability. The ECB’s decision reflects a shift from prolonged rate cuts, though future actions remain data-dependent.