Refinitiv reports three policymakers said they expect the ECB to raise rates in
December to counter energy-driven inflation, then pause as higher bond yields
are likely to slow growth and curb inflation. The ECB left rates unchanged on
Thursday; President Lagarde signaled a December hike and warned rising energy
costs are amplifying inflation risks. Officials said, unless energy prices
suddenly fall, the ECB is all but certain to lift the deposit rate to 2.75% at
the Dec. 17 meeting and then pause. An ECB estimate circulated before Thursday's
meeting showed the recent rise in bond yields versus the September baseline is
projected to subtract about 100bps from cumulative growth and cut inflation by
roughly 90bps in 2027-28.
