ECB Holds Fire on Interest Rate Hikes Until December

The European Central Bank (ECB) is expected to hold off on raising interest rates until December, according to economists surveyed by Bloomberg. The deposit rate is predicted to reach 2.75% at the ECB's final meeting of the year, skipping the next opportunity in late October.

This shift in expectations comes as oil and natural gas prices have jumped, leading to higher inflation forecasts. The ECB recently boosted its inflation forecast, supporting predictions that more tightening will be necessary to meet the 2% goal. Investors are betting on at least three more rate hikes.

Irish policymaker Gabriel Makhlouf told Bloomberg Television that 'every meeting is a live meeting' in times of uncertainty.