ECB policymaker SIMKUS said data show inflationary pressures are building and
the bank may need further tightening. September inflation topped expectations,
energy costs rose more than earlier forecasts and the labour market remains
tight. He said policymakers should wait for more data — the next comparable
meeting is in December — but added the October meeting cannot be ignored, so a
rate move this month is possible. The ECB has already raised rates twice this
year after a Middle East-driven energy shock. Markets and economists expect more
tightening but disagree on the terminal level of interest rates.
