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Expectations of a December rate increase by the European Central Bank (ECB) are unanimous among the 71 economists surveyed in a Reuters poll released on Thursday. They forecast a 25 basis point rise in the deposit rate to 2.75% next month. While 46 economists believe 2.75% will mark the peak, the remaining 25 anticipate a further increase, most likely in the first quarter of 2027. Eurozone inflation is now forecast to stay at roughly twice the ECB’s 2% target until at least the second quarter of 2027, following upward revisions by economists to their projections from a month earlier. Compared with the October poll’s estimates of 3.0% for 2026 and 2.6% for 2027, economists now project average inflation of 3.1% and 2.8%, respectively.
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