Higher energy prices and good activity trigger rate hike

In Short

Door open for further hikes. The ECB lifted its key rates by 25 bps to 2.50% today. This move came along with a hawkish message leaving the door open for further rates hikes. We look for another 25 bps hike in December. However, we deem market expectations of additional hikes in 2027 overdone.
Higher energy prices and good activity trigger rate hike
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