ECB plans December hike to curb energy-led inflation, may pause
Business
The European Central Bank is planning a small interest rate hike in December to tackle rising energy-led inflation.
But after this, the ECB might hit pause on more increases, since higher borrowing costs are expected to make it tougher for the euro zone economy to grow.
ECB deposit rate could reach 2.75%
Raising rates in December would bring the deposit rate up to 2.75%, unless energy prices suddenly drop.
The ECB's own forecasts show that rising bond yields could slow both economic growth and inflation over the next few years, so officials are weighing whether more hikes are really needed after this one.