ECB Governing Council member: A December rate hike is currently highly likely.

ECB Governing Council member Nagel said that unless the inflation outlook improves significantly, another ECB rate hike in December is almost unavoidable. The ECB kept the deposit rate at 2.50% last week, but policymakers increasingly believe this pause is only temporary. Inflation is expected to exceed 4% in the coming months, more than double the ECB's 2% target. Bulgarian National Bank Governor Dimitar Radev also warned that the inflation outlook has deteriorated since September.