ECB is expected to keep rates in October and raise them in December

The European Central Bank (ECB) is expected to keep interest rates unchanged this Thursday, with a potential increase anticipated in December. Analysts note that the ECB's decision comes amid concerns over energy shocks from the Middle East conflict and rising French debt yields. France's ten-year debt yield recently surpassed 5%, raising investor worries about its high debt and deficit levels. Despite these concerns, Moody's refrained from downgrading French debt, maintaining its Aa3 rating with a negative outlook. The ECB's upcoming meeting follows the Federal Reserve's expected decision to also maintain rates, with inflation in the eurozone reaching 3.8% in September. Experts suggest the ECB can afford to pause without altering its monetary policy direction, emphasizing the need for patience in addressing inflation.