ECB predicts inflation above target through 2025

According to Reuters, the European Central Bank expects inflation to remain above the 2% target over the next three years. This percentage is considered higher than the markets would currently expect. It means the bank's fight against rampant price increases is not over.

On Thursday, the ECB is likely to raise interest rates for the fourth time in a row to curb inflation. Besides, new quarterly economic forecasts are also must be published soon. Their data are used by investors to determine how many more hikes are possible in the future.

Due to the various factors, inflation in the 19-country Eurozone hit 10.6% in October. The rate had already fallen last month.

According to the new data, the inflation rate will be above 2% in 2024. Speaking on the condition of anonymity (since the forecasts have not been released yet), the source reported that inflation rates may slightly decline in 2025.