European interest rates could rise significantly, with Euribor rates potentially approaching 3.5%. This possibility arises in a context of tightening monetary policy by the European Central Bank.
Christine Lagarde, ECB president, is expected to announce a rate hike to 2.5% at the next meeting. This decision is almost certain, according to market expectations.
However, Lagarde is expected to give few indications about the next steps in monetary policy. Markets anticipate that interest rate hikes will not stop here, with further increases expected in the future.
