Skip to main content

Rising oil prices won’t cause the ECB to hike rates

The increase in oil prices over the past few months will have only a small impact on euro-zone inflation, so it won't alter the outlook for monetary policy. We still expect that the ECB will keep its deposit rate at 4.0% for the next 12 months. Meanwhile, Norges Bank and the Riksbank raised rates by 25bp this week, but the SNB kept rates unchanged. We think those central banks are either at, or very near, the peak of their tightening cycles. Next week, we expect to learn that inflation fell significantly in the euro-zone in September.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access