Deutsche Bank anticipates further ECB rate hike in December

Deutsche Bank has updated its forecast, now expecting the European Central Bank (ECB) to implement an additional 25 basis point interest rate hike in December, beyond the widely anticipated September increase. This revised outlook is driven by persistent energy risks that continue to pressure the inflation outlook. The bank had previously projected interest rates to peak at 2.5%, assuming a short-lived energy price shock and weaker economic growth, but these assumptions are now being challenged.