Stubborn Spanish inflation in October keeps ECB rate hike in play
Spain's October final CPI held at 4.9% year-on-year, matching estimates. Core inflation was 3.1%. Markets price 82% odds of an ECB rate move in December.
53 min ago5 min read
Nagel: December rate hike very likely needed
ECB's Nagel said a December rate hike is very likely needed, citing higher-than-expected inflation and the need to prevent energy costs from spilling over.
03/11/2026 19:113 min read
Nagel of the ECB spoke about inflation threats and the interest-rate outlook.
- A December rate increase is very likely needed, in Nagel's view.
- September's price pressures were above expectations, nearing an adverse scenario.
- It is both possible and necessary, Nagel said, to prevent the energy cost surge from inducing broad inflation.
Nagel's stance
Nagel clearly leans towards a December rate increase. His primary worry is that the energy price jump could spread to other economic sectors. Given that September's inflation was above forecasts, he believes there is a strong argument for action in December. Traders are now focused on the level of backing Nagel's opinion has among the Governing Council.
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