Franklin Templeton: ECB to Halt Rate Hikes After September, Resume in 2027

According to a Franklin Templeton report cited by Jin10, the European Central Bank is expected to raise rates for the last time in September, then hold steady to assess the impact of recent tightening measures. David Zahn, head of European fixed income at Franklin Templeton, noted that inflation is projected to remain above the ECB's 2% target for several quarters ahead. The firm anticipates the ECB will begin easing policy in 2027. However, Zahn added that geopolitical tensions could alter this outlook if they push energy prices higher and keep inflation elevated for a longer period.
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