Traders Bet on Two ECB Hikes This Year as Energy Prices Surge

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000European Central Bank headquarters in Frankfurt.Traders are fully pricing two interest-rate hikes from the European Central Bank this year, as an attack on Iranian energy assets revived fears of an inflation spike. Euro swap markets indicate 50 basis points of monetary tightening in 2026, for the first time since March 9. The ECB’s next policy announcement is on Thursday, where both economists and money markets expect officials to hold the deposit rate steady at 2%, leaving the focus on their outlook for the rest of the year.