BofA Sees ECB Rate Hike in December Amid Energy Price Fears

The European Central Bank (ECB) is expected to raise interest rates by 25 basis points in December, according to BofA Global Research. This move comes as energy prices continue to rise, adding to inflation concerns in Europe.

Rising gas and oil prices are causing alarm due to persistent geopolitical tensions and limited signs of a breakthrough in the Iran conflict. As a result, energy markets remain tight through the peak demand winter season.

The ECB's interest rate hike is seen as a response to contain inflation risks. The bank was among several major central banks that raised interest rates this month, including the US Federal Reserve and Bank of Japan.