ECB Set to Hike Again, With December Rate Increase Now a Strong Possibility

The European Central Bank is poised to deliver its second rate hike this week, with many economists expecting another increase in December.

Headline inflation in the euro area accelerated to 3.3% in August, surpassing the 2% target, while core inflation cooled more than anticipated.

Lithuania's Gediminas Simkus has suggested that a September rate hike alone might not be sufficient, while Germany's Joachim Nagel has offered little insight into his thoughts on the matter.

Markets have largely priced in a December increase, with JPMorgan, Societe Generale, and BNP Paribas recently shifting their forecasts to expect another rate hike.