Standard Chartered Joins Major Banks in Betting on December ECB Rate Hike

Standard Chartered has joined major banks in predicting that the European Central Bank (ECB) will raise interest rates by 25 basis points to 2.75 per cent in December.

This change of heart is due to stronger-than-expected inflation and resilient economic activity, which have reinforced the case for further tightening.

The ECB raised its deposit rate last month as policymakers sought to contain inflation risks stemming from higher energy costs and resilient economic growth.

Standard Chartered's economists believe that the ECB will opt to take rates slightly into restrictive territory, seeking insurance against the risk of higher energy prices feeding through to wages and broader price pressures.