European rates look set to grind higher, with ECB tightening the dominant theme in recent published research.
One camp of analysts expects the ECB to hike its deposit facility rate as soon as the June meeting. A more hawkish thread of research extends that path through September 2026, targeting a 2.5% policy rate.
The rationale, according to the published consensus, centers on stubborn above-target core inflation in the euro area — which ECB officials themselves have flagged to justify near-term tightening. Some recent commentary notes that ECB speakers have already nudged Eurozone interbank rates higher. Researchers frame the expected moves as "credibility-building" rather than an aggressive cycle, while flagging that stalling PMI readings cloud the pace beyond the immediate horizon. Broader work situates the ECB inside a global impulse: roughly half of developed-market central banks are expected to hike modestly through end-2026, largely a response to the energy shock.
On individual names, a constructive view is circulating on Hungarian government bonds — analysts cite progress on EU fund unlocking and the euro-adoption trajectory as supportive, with political noise treated as secondary.