ECB Aims for Final Rate Hike in December

The European Central Bank (ECB) is expected to hold off on further interest-rate increases until December, according to a recent survey. Respondents in the Bloomberg survey believe that the Governing Council will lift the deposit rate to 2.75% at its last meeting of the year, skipping the next opportunity to do so in late October.

This decision comes as a surprise, given that economists had predicted earlier this year that September's quarter-point increase would be the final hike in this cycle. However, it seems that the ECB is choosing to wait and see how the situation with inflation triggered by conflict in the Middle East unfolds before making any further decisions.