ECB Sees Inflation Peaking at 6.3% in 2027 Under Severe Scenario

Euro-zone inflation would peak at 6.3% in the first quarter of 2027 under a severe version of how events in Iran may play out, according to the European Central Bank.

After holding interest rates at 2% for a sixth meeting and saying it’s well placed to navigate the fallout from surging energy costs, the ECB said Thursday that its extreme scenario — published alongside quarterly economic projections — would also trigger a short recession in the 21-nation bloc.