Market Survey Signals ECB Rate Hike Continuing Through September with Terminal Target Near 3%

Survey respondents anticipate that the European Central Bank (ECB) will maintain its rate hiking cycle, with a strong consensus pointing toward another increase in September. The expected terminal rate is projected to fall between 2.50% and 3.00%, according to FX Street.

This outlook reflects ongoing concerns about inflation and the ECB's commitment to tightening monetary policy to stabilize prices. Market participants are closely watching the central bank’s moves as they will have significant implications for European financial markets.

For Japanese investors, the ECB's trajectory is particularly relevant as it could influence yen exchange rates and impact global risk sentiment, affecting both FX and equity markets in Japan.