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2026-11-05 19:58:28
[ECB's Zigmann Signals Hawkish Stance, December Rate Hike Highly Likely] ⑴ ECB Governing Council member Zigmann stated that with inflation rising again in October, a December rate hike is highly probable, potentially marking the third rate hike since the Iran conflict. ⑵ He hinted at a possible 25 basis point increase in the deposit rate at the year-end policy meeting, noting that current Eurozone inflation is already twice the target. ⑶ Governing Council member Kohl previously expressed similar views, suggesting a December rate hike is an option if the current economic situation remains unchanged; Zigmann has not yet provided a forecast for monetary policy beyond 2027. ⑷ He mentioned that the US election results eased expectations in the energy market, with crude oil prices recently falling by nearly 19%, but the sustainability of this decline remains uncertain. ⑸ Market View: Lower oil prices will alleviate inflationary pressures; if energy prices continue to weaken, the end of the ECB's current rate hike cycle may be brought forward.
