ECB Seen Hiking Rates Again in December Amid Energy Price Pressures

Rabobank strategists Bas van Geffen and Elwin de Groot expect the European Central Bank (ECB) to raise the deposit facility rate by 25 basis points to 2.75% in December.

This decision is driven by higher energy price forecasts, which will hit inflation harder and earlier than economic activity.

The strategists argue that the ECB will not accelerate tightening, as they see upside risks if inflation broadens, but stress that energy inflation should ease from March, limiting further hikes.