[Reports indicate ECB officials expect a December rate hike, followed by a pause] According to Reuters, three policymakers interviewed after the meeting said that European Central Bank (ECB) policymakers expect to raise interest rates in December to combat high energy price-driven inflation, followed by a pause as rising bond yields are expected to drag on economic growth and suppress inflation. The ECB kept interest rates unchanged on Thursday, as widely expected. ECB President Christine Lagarde hinted at another rate hike in December and warned that high and rising energy costs are exacerbating inflation risks. They said that unless energy prices suddenly and sharply fall, the ECB will almost certainly raise interest rates on December 17, increasing the deposit rate to 2.75%. However, they expect to pause rate hikes thereafter. A ECB estimate circulating before Thursday's meeting showed that compared to the September baseline forecast, recent increases in bond yields are expected to cumulatively reduce economic growth by 100 basis points and lower inflation by 90 basis points between 2027 and 2028.