Kakao Bank logs record earnings on rise in interest, non-interest income

The European Central Bank is poised to increase interest rates in December as part of its strategy to combat rising inflation across the eurozone. Governing Council members are set to meet on December 17 to deliberate on the monetary policy adjustments. Eurozone authorities have already increased key rates twice this year in response to surging inflation and higher energy costs.

During their last meeting, the deposit rate remained steady at 5.2%. Increasing interest rates raises borrowing costs, potentially reducing demand and helping to rein in inflation. However, higher rates may also burden investors, possibly slowing economic growth. In September, Eurozone consumer prices surged by 8.3% compared to the same period last year, reaching the highest level in three years. The ECB aims for a medium-term inflation target of 2.0% for the 21-country eurozone.