The Economic Times

Markets brace for more hawkish ECB as energy risks threaten to keep inflation elevated

Markets are increasingly pricing in a more hawkish European Central Bank as geopolitical tensions, elevated energy costs and depleted gas inventories threaten to keep eurozone inflation high. Investors see a rising probability of further rate hikes through 2027, while resilient economic activity and fading disinflationary forces add to the case for tighter policy.