UBS expects the European Central Bank to raise interest rates this Thursday. The Swiss bank's outlook is based on factors such as the "strengthening" of economic activity until the end of the year and throughout 2027.
This economic strengthening will be "sustained" by fiscal expansion in Germany and private consumption, according to UBS's analysis.
UBS also states that the decision to raise interest rates should "reinforce" the European Central Bank's credibility in combating inflation, before adopting a "more accommodative stance" in 2027.
