AssetID: 55976452
Headline: UNCAPTIONED: J.P. Morgan and BNP Paribas See ECB Rate Hike in December
Caption: J.P. Morgan and BNP Paribas See ECB Rate Hike in December. J.P. Morgan and BNP Paribas now expect the European Central Bank to raise interest rates again in December, reversing their previous forecasts that the tightening cycle would end earlier. Both banks expect a 25-basis-point increase in December, as persistent inflation and high energy prices continue to put pressure on the euro zone economy. Their forecasts come ahead of the ECB’s September 10 meeting, where markets are already pricing in another 25-basis-point rate hike. Energy prices remain a key concern for policymakers, with oil still trading above $95 a barrel despite easing slightly from recent highs. BNP Paribas says the resilience of the European economy and the energy shock could increase the risk of inflation spreading into other parts of the economy. J.P. Morgan also points to strong economic growth, elevated energy costs and persistent core inflation as reasons for further monetary tightening. The outlook remains dependent on future inflation data, with the ECB keeping the door open to further rate increases if price pressures continue to prove persistent. Instructions: THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT
Keywords: Current Affairs & Politics,ECB,Christine Lagarde,BNP Paribas,J.P. Morgan,interest rates,inflation,December,meeting,September,tightening cycle,control,energy crisis,prices,economy
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