ECB Expected to Raise Rates Again Amid Inflation Pressures

The European Central Bank (ECB) is expected to raise interest rates again in December as inflation remains above target. This prediction comes from major banks such as Goldman Sachs, Citigroup, and Barclays, which point to renewed surges in energy prices.

These price increases have pushed crude oil above $100 a barrel, threatening fresh upward pressure on consumer prices. As a result, the ECB's focus on taming inflation remains unwavering.

The central bank has raised borrowing costs aggressively over the past few years to curb inflation, which it does not expect to return to target until late 2027. Traders are pricing in a 93.9% chance of a quarter-point rate hike from the ECB in December.