<ul><li>Monetary policy always tries to act to fight inflation</li><li>Further interest rate increases will depend on economic data</li></ul><p style=““ class=“text-align-justify“>There’s still some time before next month’s policy meeting decision on 27 October, so I reckon we might get a better sense of what the ECB wants to do then. Another 75 bps rate hike is plausible as money markets have priced in roughly ~70 bps for both October and December, though rate cuts are already being priced in as well for late next year.</p>

This article was written by Justin Low at forexlive.com.