ING has revised its monetary policy outlook, predicting that both the Federal Reserve and European Central Bank will raise interest rates once before year-end. The bank previously forecast rates would remain unchanged but now expects hikes in December as central banks respond to supply-side shocks from surging energy prices.
Economists at ING cited recent Fed and ECB meetings as evidence that accommodative policy is unlikely despite limited immediate economic impact from energy costs. The forecast shift reflects concerns over repeating 2022's delayed monetary response to inflation, with memories of that sharp price surge still influencing current policymaking decisions.
ING Forecasts Fed and ECB Rate Hikes in December Amid Energy Price Surge
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