European Central Bank Governing Council member Ante Zigman indicated that the ECB may raise interest rates next month, which would mark the third increase in borrowing costs since the outbreak of the Iran war.
Speaking in Opatija, Croatia on Thursday, Zigman stated, "Inflation continued to rise in October. We can say that a December rate hike is quite likely."
With consumer prices currently rising at twice the ECB's 2% target, the Croatian official joined other policymakers in signaling that the ECB may raise the deposit rate by another 25 basis points at its final policy meeting of 2026.
Although markets are betting on further monetary tightening in 2027, Zigman declined to make a judgment on that, saying it is too early to determine what actions will be needed by then.
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