The likelihood of a rate hike at the ECB in December is strengthening

Bundesbank President Joachim Nagel said the ECB may have no choice but to raise interest rates in December if the inflation outlook does not improve markedly, strengthening expectations for a year-end hike. Nagel pointed to a deteriorating inflation picture as the basis for his warning, making him one of the more hawkish voices steering the debate inside the eurozone's central bank. The remarks matter because they signal that policymakers are leaning toward further tightening rather than a pause, even as the region's growth outlook softens. Investors will watch incoming eurozone inflation and wage data, along with comments from other ECB officials, for confirmation that a December move is building consensus.