Wall Street Banks Forecast Further ECB Rate Hikes Amid Ongoing Inflation Concerns
Major Wall Street institutions expect further interest rate hikes from the European Central Bank (ECB) following its hawkish policy announcement on Thursday. The ECB raised its key rate by a quarter percentage point, matching forecasts, and indicated that consumer price growth would stay above its 2% goal for a lengthy stretch.
Goldman Sachs, Citigroup, and Barclays foresee another ECB increase in December, with Citi additionally projecting a further move in March 2027. According to LSEG data, traders assign a 94% probability to a quarter-point December hike.
The ECB has repeatedly stressed that upcoming policy choices will hinge on incoming data, and officials are scheduled to convene on October 29. The current inflation picture is complicated by the recent increase in crude oil prices above $100 per barrel due to tensions between Washington and Tehran.