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BofA sees ECB rate hike in December as energy prices fan inflation

Source: reuters.com

Monetary PolicyInterest Rates & YieldsInflationEnergy Markets & PricesAnalyst Insights
BofA sees ECB rate hike in December as energy prices fan inflation

BofA Global Research expects the ECB to raise rates by 25bps in December, citing a renewed energy shock. The bank expects elevated energy prices to keep euro-zone inflation above the ECB’s target for longer, implying tighter monetary policy and increased headwinds for rate-sensitive assets.

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