Morgan Stanley: We expect the European Central Bank to raise interest rates by 25 basis points each in June and September 2026, compared to our previous forecast of no change in rates this year. Faced with slowing growth, we believe the ECB is likely

2026-03-20

Morgan Stanley: We expect the European Central Bank to raise interest rates by 25 basis points each in June and September 2026, compared to our previous forecast of no change in rates this year. Faced with slowing growth, we believe the ECB is likely to cut rates again in June and September 2027, bringing them back to the neutral range.