Citing three sources, ECB policy officials expect to raise interest rates by 25 basis points on December 17, raising deposit interest rates from 2.50% to 2.75%. Unless energy prices drop drastically, this rate hike is almost a foregone conclusion. However, officials expect further policy tightening to stop after interest rate hikes, as higher bond yields could reduce Eurozone economic growth by 1 percentage point and inflation by 0.9 percentage points between 2027 and 2028.

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