The ECB raised its deposit facility rate to 2.25% as eurozone services inflation jumped to 3.5% year-on-year in May, its sharpest monthly acceleration since 2023. Consumer confidence recovered to −17.7 in June, but the credit-cycle tailwind is now running into a fresh tightening cycle.
ECB President Christine Lagarde stated that shorter-term inflation expectations remain elevated compared to levels before the Middle East conflict, while longer-term measures stay near the 2% target. Source
