POLL ECB to hike rates again in December as inflation almost doubles 2% target - Reuters

A Reuters poll of economists points to another European Central Bank rate increase in December, with inflation running at nearly twice the ECB's 2% target. The survey reflects a broad expectation that policymakers will continue tightening rather than pause, even as the eurozone economy shows signs of strain.

For markets, the key issue is not whether rates rise, but how far and how fast. A December hike is already partly reflected in pricing, so attention may shift to the ECB's guidance on the path beyond that meeting. Any signal that the pace of increases could slow would matter for eurozone bonds, the euro, and rate-sensitive sectors such as banks and real estate.

Investors should watch incoming inflation prints, wage data, and ECB commentary for clues on the terminal rate. The central bank faces a difficult trade-off: tightening enough to bring inflation down without tipping the economy into a deeper slowdown.