ING: Broad Support for ECB's September Rate Hike, But October Hike Unlikely

Jin10 Data, October 8 – ING economist Carsten Brzeski stated in a report that the minutes of the European Central Bank's (ECB) September monetary policy meeting showed broad support for the rate hike decision that month. However, Brzeski pointed out that the internal discussions during the meeting were actually more balanced than ECB President Christine Lagarde implied in her post-meeting remarks, suggesting that the likelihood of another rate hike in October is low. Some officials believe the duration of the energy shock may be shorter than previously assumed, while others have questioned claims about the resilience of the European economy in withstanding the energy shock. Meanwhile, the continued rise in bond yields has further reinforced the view among some officials that additional rate hikes may not be necessary. Brzeski added: "As the bond market is effectively doing the work of tightening financial conditions for the ECB, some officials may be less inclined to push for further rate hikes compared to the sentiment during the September meeting."