ECB Expected to Hold Rates and Hike in December
Economists expect the European Central Bank to hold its deposit rate steady this month before raising it by 25 basis points in December. Inflation continues running nearly double the two percent target, prompting economists to revise their forecasts upward.
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The European Central Bank will hold its deposit rate at 2.50% this month but raise it by 25 basis points in December as inflation runs nearly double its 2% target, a Reuters poll showed. Most economists polled had until recently thought the central bank was finished raising borrowing costs. Global government bond yields have climbed sharply over the past weeks, reflecting higher inflation expectations and fiscal worries.
