Bank of America: Energy Prices Drive Inflation, ECB Expected to Raise Rates by 25BP in December

Jin10 News, September 24 – Bank of America predicts that the European Central Bank (ECB) will raise interest rates by 25 basis points in December, citing a new wave of energy shocks that will keep inflation in the eurozone above the ECB's target level for a longer period. Recently, rising European natural gas and oil prices are exacerbating inflation concerns. Persistent geopolitical tensions and the lack of breakthrough signs in the Iran conflict may keep the energy market tight during the winter demand peak. Meanwhile, Bank of America stated in its report: "Economic growth may still perform reasonably well, but its strength is likely to fall short of current levels, and we suspect significant second-round effects have yet to emerge." The bank noted that ECB action in October is not impossible, but it would likely require significantly higher inflation data.