Berenberg predicts that the European Central Bank may start raising interest rates in mid-2027

Holger Schmieding from Berenberg Bank stated in a report that the European Central Bank may raise key interest rates starting from mid-2027. This year's Eurozone economic growth is expected to be 1.3%, slightly higher than the long-term trend growth rate of 1.2%, and is expected to reach a cyclical high of 1.5% in 2027, mainly driven by the gradual effectiveness of Germany's fiscal stimulus measures. The European Central Bank may raise its key interest rate to a neutral level of about 3% by early 2028, and it is expected that economic growth will fall back to near trend growth in 2028.