Barclays said on the 10th that it expects the European Central Bank to deliver another 25 basis point rate hike in December. It said upward revisions to the inflation outlook, combined with rising energy prices amid a war between the United States and Iran, are strengthening the case for further monetary tightening. The ECB decided on a 25bp rate hike at its governing council meeting on the 10th, and its new economic projections showed it is highly likely that inflation will remain above its 2% target for an extended period. Goldman Sachs also said it expects the ECB to go ahead with another 25bp rate hike in December, pushing interest rates into slightly restrictive territory, and noted that the ECB's baseline scenario shows inflation returning to its 2% target only in late 2027. Barclays sees little chance of a policy change in October and expects policymakers to wait until December, when they will have the latest economic projections in hand.
Barclays PLCBarclays is the source of the forecast for another ECB 25bp hike in December, but the news is about the ECB, not Barclays' own business.
Goldman Sachs Group IncBarclays and Goldman expect the ECB to raise rates another 25bp in December, pushing the policy rate/yield higher.
