The European Central Bank to consider raising rates in December

The European Central Bank is expected to raise interest rates by 0.25 percentage points in December. Economists anticipate the deposit rate will climb to 2.75%.

Eurozone inflation reached 4% in October, twice the central bank's target. Economists expect average inflation of 3.1% in 2026 and 2.8% the following year.

The recent drop in oil prices has eased pressure on prices, though natural gas reserves remain low. A cold winter or worsening conditions in the Middle East could push energy costs back up.

The eurozone's economic growth forecast has been upgraded to 1.1% for 2026 and 1.3% for 2027.

Source: Investing.com