{
  "id": 6956923,
  "title": "ECB hawkish stance and rising energy prices prompt expectations of further rate hikes",
  "url": "https://urgent.news/2026/09/11/ecb-hawkish-stance-and-rising-energy-prices-prompt-expectations-of",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-11T21:00:00.000Z",
  "source": {
    "name": "Gulf Times Business",
    "slug": "gulf-times-business",
    "url": "https://www.gulf-times.com/article/733104/business/ecb-hawkish-stance-and-rising-energy-prices-prompt-expectations-of-further-rate-hikes"
  },
  "original_language": "en",
  "account": "Three major Wall Street banks - Goldman Sachs, Citigroup, and Barclays - are forecasting the European Central Bank (ECB) to increase interest rates multiple times in the near future, following the bank's recent \"hawkish\" decision to raise rates by 25 basis points. This move has heightened concerns that inflation may persist at elevated levels for a longer period than anticipated. The global inflationary pressures have been exacerbated by renewed tensions between the US and Iran, driving oil prices above $100 per barrel. As a result, experts predict that the ECB may continue to adopt a restrictive monetary policy for an extended period.\n\nGoldman Sachs, Citi, and Barclays all anticipate a further interest rate hike at the ECB's meeting in December 2023. Citi specifically projects an additional increase in March 2027. Traders' assessments align with this view, with a 94% probability of a quarter-point rate hike in December, according to LSEG data. The ongoing challenge of high inflation, according to Citi economists, could render inflation \"endogenous,\" meaning that it becomes self-sustaining and difficult to curb.\n\nUBS, through its Global Research and Global Wealth Management divisions, echoes this sentiment, expecting the ECB to raise rates in December. However, UBS forecasts a reversal of this decision later, with interest rates settling back at 2.5% by the end of 2027. Barclays echoed the ECB's latest rate hike as a \"no-brainer,\" underscoring the central bank's unwavering commitment to eliminating inflation, which the bank does not anticipate returning to its 2% target until late 2027.\n\nGoldman Sachs highlighted that a December rate hike would push interest rates into \"mildly restrictive\" territory. The ECB has consistently emphasized that its policy decisions will be guided by data, and policymakers are scheduled to meet again on October 29 to discuss future actions.",
  "summary": "Wall Street banks Goldman Sachs and Citigroup, alongside Barclays, expect the European Central Bank to raise interest rates further after Thursday's hawkish policy decision reinforced concerns th...",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}