US Market: J.P. Morgan, BNP Paribas expect ECB rate hike in December as inflation risks persist
Economic Times 1 hr ago·4 Sept 2026, 7:46 am
Major global banks, including J.P. Morgan and BNP Paribas, have revised their outlook for the European Central Bank (ECB). These institutions now expect the central bank to raise interest rates by another 25 basis points in December, reversing their previous predictions that the tightening cycle might end without a final hike.
This shift is driven by persistent inflation risks, including elevated energy prices, and signs of resilient economic growth in the Eurozone. Market participants are already pricing in a near-certain rate increase at the ECB's upcoming September meeting, signaling that the central bank remains focused on bringing price stability back to the region.
For investors, this development suggests that the era of ultra-cheap borrowing costs in Europe may continue for a while longer. It highlights the central bank's commitment to fighting inflation, which could impact currency valuations and corporate earnings across the region.
Excerpt from Economic Times
J.P. Morgan and BNP Paribas now expect the European Central Bank to deliver another 25-basis-point rate hike in December, reversing their earlier calls for the tightening cycle to end without a December increase. Persistent inflation risks, elevated energy prices and resilient economic growth are driving the shift,…Read the original at Economic Times
Key takeaways
- Category: Economy.
- AI reads the tone as negative (potentially bearish) for the stock.
- Flagged as a high-impact, market-moving story.
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