ECB MAY RAISE RATES BY 50 BPS BY MID - 2027 AS ENERGY PRICES FUEL INFLATION : REPORT

What happened: ICICI Bank Global Markets expects the ECB to raise rates by a cumulative 50 basis points by the first half of 2027, citing elevated energy prices and persistent services inflation. Key numbers: Eurozone HICP inflation rose to 3.8 per cent in September from 3.2 per cent in August. Why it matters: The report says elevated energy costs and sticky services inflation could complicate the ECB's efforts to bring inflation back to its 2 per cent target, strengthening the case for further monetary tightening.

ICICI Bank Global Markets expects the ECB to raise rates by a cumulative 50 basis points by the first half of 2027, citing elevated energy prices and persistent services inflation.

The report says elevated energy costs and sticky services inflation could complicate the ECB's efforts to bring inflation back to its 2 per cent target, strengthening the case for further monetary tightening.