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2026-09-24T15:39:00.000Z

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Bank of America forecasts ECB rate hike in December

Bank of America forecasts ECB rate hike in December

Bank of America expects the European Central Bank to raise interest rates by 25 basis points in December 2023, citing the ongoing rise in energy prices and their impact on inflation. The increase in oil and gas prices, along with geopolitical tensions, heightens concerns that inflation will remain above targets for a longer period, especially given the energy shortages expected during the winter season. Despite strong economic growth in the first half of 2026, caution remains regarding the effects of rising energy prices, with officials from the bank emphasizing that monetary policy decisions will depend on broader indicators, and that further interest rate hikes could occur if inflationary pressures persist.

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