JPMorgan expects the European Central Bank to raise interest rates by another 25 basis points in December.

1. According to JPMorgan's latest research report, the European Central Bank is expected to raise interest rates by another 25 basis points at its December 2026 policy meeting, continuing its monetary tightening process. If implemented, this move will further increase deposit rates in the eurozone to address inflationary pressures that remain above target levels. 2. Although there have been signs of slowing economic growth in the eurozone recently, persistently high energy prices, geopolitical risks in the Middle East, and a second-round inflation effect driven by rising wages have allowed the hawks within the European Central Bank to maintain the upper hand. The market will pay attention to the wording of the statement at the September meeting to judge whether a December rate hike has essentially been locked in.