ECB rate hike seen continuing as oil surge lifts inflation risk
Goldman Sachs, Citigroup and Barclays expect the European Central Bank to raise interest rates again after Thursday's 25 basis point increase, with Citi forecasting a further hike in March 2027. The banks point to renewed energy price pressure, including crude above US$100 a barrel, as inflation is projected to stay above the ECB's 2% target until late 2027. Traders price a 93.9% chance of another quarter-point move in December.