ECB Rate Hike Odds Skyrocket as Inflation Concerns Mount

Standard Chartered has revised its outlook for the European Central Bank (ECB), now expecting policymakers to raise the deposit rate by 25 basis points to 2.75% in December.

This change follows stronger-than-expected euro zone inflation in September and signs that economic activity has remained more resilient than previously anticipated.

Inflation accelerated during the month, driven largely by higher energy prices, while recent business activity indicators suggested that the euro zone economy has maintained greater momentum than Standard Chartered had earlier projected.