J.P. Morgan and BNP Paribas now expect the European Central Bank to deliver another 25-basis-point interest rate hike in December, reversing their earlier forecasts that the central bank's tightening cycle would end without a December increase.
The revised forecasts come as persistent inflation risks and elevated energy prices strengthen the case for further monetary tightening. Reuters reported that both brokerages had previously expected the ECB's rate-hiking cycle to end without a December increase.
