ECB signals growing rate hike inclination as Lagarde stresses rising risks
Polymarket partners with Chainalysis to deploy on-chain surveillance targeting insider trading and manipulation as volumes hit $7B monthly and regulation intensifies.ECB kept rates unchanged at April 30 meeting but signaled potential June rate hikeLagarde emphasized intensifying risks to both inflation and economic growthMarkets pricing approximately 50 basis points of tightening by year-end The European Central Bank maintained interest rates unchanged at its April 30 meeting, but ECB President Christine Lagardes press conference remarks indicated a June rate hike has moved closer to reality, according to ING analyst Carsten Brzeski. Lagarde stressed that risks on both growth and inflation are intensifying, though the decision to keep rates steady was unanimous. Brzeski noted the ECB has introduced a clear inclination towards rate hikes within its wait-and-see stance. Markets currently price approximately 50 basis points of tightening by year-end, with between 20 and 40 basis points anticipated by June. Inflation Risks Tilt Upward The ECB baseline projections see headline inflation averaging 2.6% in 2026, 2.0% in 2027 and 2.1% in 2028, revised higher from December primarily due to energy price pressures from the Iran war. Core inflation is projected at 2.3% in 2026, moderating to 2.2% in 2027 and 2.1% in 2028. Lagarde warned that “the war in