ECB to hike rates again in December as inflation almost doubles 2% target: Reuters poll

The European Central Bank (ECB) is set to raise interest rates again in December, according to a Reuters poll of economists. The bank's deposit rate is currently at 2.50%, but is expected to increase by 25 basis points in December, bringing it to 2.75%. This move comes as inflation in the euro zone has nearly doubled the ECB's 2% target.

The central bank has raised rates twice this year, most recently in September. However, a strong majority of economists now believe another hike is on the horizon in December, a shift from the previous month's survey where over 90% expected rates to remain unchanged. The main risk is that there may be a further increase in rates, possibly in March.

While most economists see the deposit rate peaking at 2.75%, a third now expect it to rise to 3.00%. Inflation is projected to reach 3.7% on average this quarter from 3.3% in the third quarter, up from the previous prediction of 3.3% and 2.9% and 2.3% respectively. Overall, policymakers agreed that inflation risks were on the upside.