World Economy

ECB Poised to Resume Rate Increases as Inflation Expectations Rise Across Europe

Household inflation expectations ticked upward in September, mounting pressure on the European Central Bank to continue tightening monetary policy across the euro zone. Economists anticipate the central bank will pause at its next meeting before resuming rate increases in December, marking what analysts expect to be the final hike in the current tightening cycle. The uptick in consumer expectations contrasts with mixed signals from other major economies. Singapore's core inflation unexpectedly cooled in September despite global oil price resurgence, prompting its central bank to hold rates steady. Meanwhile, Russia's central bank kept borrowing costs unchanged for a second consecutive meeting as energy infrastructure damage from cross-border strikes continues pressuring prices above target levels. China reported stronger-than-expected trade flows, with both exports and imports surging past forecasts in September.