Poll: ECB will hike interest rates by half a point in December

Central bank will raise interest rates again to fight inflation but those increases may well be smaller than recent ones, the bank's chief economist Philip Lane has said

ECB president Christine Lagarde.

The European Central Bank, led by president Christine Lagarde, will press on with policy tightening, adding 50 basis points, or half a point, to its deposit rate next month, as it worries rapid price growth is becoming entrenched, despite the bloc almost certainly entering recession, a Reuters poll found.

Inflation in the region has soared due to surging energy prices following Russia's invasion of Ukraine and disrupted supply chains, reaching 10.6% last month — more than five times the ECB's 2% target.