ECB Rate Hike Predictions Revised Amid Energy Concerns

J.P. Morgan and BNP Paribas have revised their forecasts for the European Central Bank, predicting another 25-basis-point rate hike in December.

This comes as persistent inflation risks and elevated energy prices strengthen the case for further tightening.

The brokerages had previously expected the ECB's tightening cycle to end without a December rate increase.

BNP Paribas analysts stated, 'We think the persistence of the energy shock and the resilience of the economy make second-round effects more likely to materialise.'