Reuters survey: Despite euro-area inflation running close to twice the ECB’s 2% target, 70 of 73 economists surveyed Oct. 5–8 expect the ECB to hold the deposit rate at 2.50% in October, and 64 expect a 25bp hike in December. The view marks a reversal from earlier expectations that the ECB had finished tightening; global government bond yields have risen sharply in recent weeks, lifting inflation expectations and fiscal worries. Morgan Stanley chief European economist Jens Eisenschmidt said the

Reuters survey: Despite euro-area inflation running close to twice the ECB’s 2% target, 70 of 73 economists surveyed Oct. 5–8 expect the ECB to hold the deposit rate at 2.50% in October, and 64 expect a 25bp hike in December. The view marks a reversal from earlier expectations that the ECB had finished tightening; global government bond yields have risen sharply in recent weeks, lifting inflation expectations and fiscal worries. Morgan Stanley chief European economist Jens Eisenschmidt said the ECB is likely to follow its existing quarterly adjustment rhythm—implying a December rate rise—with the main upside risk being an additional hike, possibly in March.