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The European Central Bank is expected to increase interest rates again in December, with inflation running at twice its target and uncertainty over energy costs keeping policymakers under pressure. While most economists believe the decision will mark the final increase in the current tightening cycle, more than a third anticipate another hike in early 2027. All 71 economists surveyed by Reuters between November 10 and 12 expect the ECB to lift its deposit rate to 2.75% next month. The move would follow previous increases in June and September, taking borrowing costs above the central bank's estimated neutral range of 1.75% to 2.50%. The neutral range represents the level at which interest rates neither stimulate nor restrict economic activity.
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