ECB Rate Hike Expected in December Amid Inflation Concerns

Barclays expects the European Central Bank to raise interest rates by another 25 basis points in December, citing higher inflation projections and rising energy prices linked to the U.S.-Iran war.

The forecast comes after the ECB raised its key interest rates by 25 basis points on Thursday and released updated projections indicating that inflation could remain above its 2% target for an extended period.

According to Reuters, traders are now pricing in a 93.9% probability of another quarter-point rate increase from the ECB in December, based on LSEG data.