The ECB will probably raise interest rates again

Frankfurt When ECB President Christine Lagarde announced a 0.75 percentage point hike in interest rates in September, one point was important to her. This is not the norm, she clarified. After all, the European Central Bank (ECB) had never raised interest rates so sharply in one fell swoop.

The central bank could now add the same amount just under six weeks later. At least that’s what most economists expect ahead of Thursday’s council meeting. Michael Hünseler, head of active bond management at MEAG: “What choice does the ECB have? Inflation is unlikely to be contained without hurting the economy.”

In addition to interest rates, there are other topics that are likely to cause debate. The ECB could also limit banks’ profits from a long-term loan program. In addition, Christine Lagarde may give further indications as to when the central bank will reduce its bond portfolio.