Standard Chartered joins major banks in betting on December ECB rate hike
FILE PHOTO: A Standard Chartered bank signage in Singapore August 4, 2026. REUTERS/Edgar Su/File Photo
Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
Oct 2 : Standard Chartered expects the European Central Bank to raise its deposit rate by 25 basis points to 2.75 per cent in December, reversing its previous call for a pause, after stronger-than-expected inflation and resilient economic activity reinforced the case for further tightening.
The brokerage changed its forecast after euro zone inflation accelerated more than expected in September, driven largely by higher energy prices, while recent business activity data pointed to a more resilient economy than previously anticipated.
Major Wall Street banks have broadly coalesced around expectations for another ECB rate hike in December.
ECB, along with several other major central banks, raised interest rates last month as policymakers sought to contain inflation risks stemming from higher energy costs and resilient economic growth.
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
“We think the ECB will opt to take rates slightly into restrictive territory,” the brokerage’s economists wrote in a note, adding that policymakers may seek insurance against the risk of higher energy prices feeding through to wages and broader price pressures.
The ECB will next meet on October 29, but Standard Chartered said a December rate hike is more likely, as policymakers will then have updated economic forecasts and another round of inflation data, despite limited signs of second-round price pressures.
Money markets are pricing in a roughly 65 per cent probability that the ECB will raise rates by 25 basis points in December, LSEG data showed.
Source: Reuters
Sign up for our newsletters
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
