The European Central Bank, ECB, will likely raise its policy rate in December, according to Governing Council member Ante Zigman. Bloomberg News reports this.
Zigman points out that inflation continued to rise in October and that consumer prices are now increasing twice as fast as the ECB’s 2 percent target.
A 0.25 percentage-point hike would be the third since the start of the Iran war.
At the same time, Zigman believes it is too early to assess the need for further tightening in 2027.
He points out that the oil price has fallen nearly 20 percent in recent days, but that developments in the energy market are uncertain.
