- It is unclear if inflation peak has been reached or still to come next year
- Cannot exclude some inflation at the start of next year
- Must take past rate hikes into account when considering next ones
The narrative is starting to change even before they get to the December meeting next week. A 50 bps move is all but cemented at this point but markets will be looking for what comes next. The window is continuing to close for the ECB and that is evident by the commentary above.
