News & AnalysisCareer
Trading
Explore a wide range of markets with competitive pricing, deep liquidity, and advanced trading tools.
Learn More 
Platform
Trade seamlessly with TMGM's powerful platform, built for speed, precision, and a superior trading experience.
Learn More Trading Platform
Trading Tools
Academy
Learn the fundamentals of trading with beginner-friendly resources, including guides, webinars, and market insights.
Learn More News & Analysis
Get real-time market updates and expert analysis to stay ahead of trading opportunities
Learn More News & Analysis
About
Learn what sets TMGM apart — our global presence, regulatory strength, and commitment to innovation in trading.
Learn More Why Choose TMGM
Sponsorship
ECB set to raise rates to 2.75% in December, economists unanimously predict in Reuters poll
A 25 basis point increase in the European Central Bank (ECB) deposit rate to 2.75% in December is expected in a Reuters poll released on Thursday. A rate rise next month is forecast by all 71 economists surveyed. While 46 put the peak in the deposit rate at 2.75%, the remaining 25 anticipate a further increase, most likely in the first quarter of 2027.
Compared with a month earlier, economists have revised their inflation projections upwards. They now anticipate Eurozone inflation staying at roughly twice the ECB’s 2% target until at least the second quarter of 2027.
Average inflation is forecast at 3.1% for 2026 and 2.8% for 2027, compared with 3.0% and 2.6% in the October survey. Economists also anticipate an acceleration in core inflation, with averages of 2.6% this quarter and 2.8% in the first quarter of 2027.
Growth forecasts have been revised upwards as well: economists now project Eurozone economic expansion of 1.1% in 2026 and 1.3% in 2027. The corresponding forecasts in the October poll were 1.0% and 1.2%, respectively.
ECB Questions Answered
Based in Frankfurt, Germany, the European Central Bank (ECB) serves as the Eurozone’s reserve bank, setting interest rates and conducting monetary policy across the region. Maintaining price stability is the ECB’s main mandate, which entails keeping inflation at around 2%. Adjustments to interest rates are its principal means of pursuing that goal. Higher relative interest rates generally strengthen the euro, while lower relative rates tend to have the opposite effect. Monetary policy is determined by the ECB Governing Council at eight meetings each year. The decision-makers comprise the heads of the Eurozone’s national central banks and six permanent members, among them ECB President Christine Lagarde.
When circumstances are extreme, the European Central Bank can deploy Quantitative Easing (QE). Under this policy, the ECB prints euros to purchase assets, typically government or corporate bonds, from banks and other financial institutions. The euro usually weakens as a result. Used as a last resort, QE is an option when interest rate cuts alone are unlikely to deliver price stability. The ECB deployed it during the Great Financial Crisis in 2009-11, again in 2015 as inflation persisted at low levels, and during the Covid pandemic.
Once an economic recovery is under way and inflation begins to rise following QE, the opposite policy, quantitative tightening (QT), is undertaken. Under QE, the European Central Bank (ECB) supplies financial institutions with liquidity by buying government and corporate bonds from them. Under QT, by contrast, it ceases further bond purchases and no longer reinvests the principal repaid as its existing bond holdings mature. This is generally supportive of, or bullish for, the euro.
POPULAR ARTICLES
1USD/CAD Price Forecast: Strong buying interest evident with RSI near 662103.08: Rising Fed rate hike bets lift US Dollar Index to a new year-to-date high3New Zealand Dollar stabilises near 0.5550 as US Dollar buying pauses4US Dollar: Gains ease as focus turns to Fed commentary – BBH5ECB set to raise rates to 2.75% in December, economists unanimously predict in Reuters poll6Top Altcoins Price Forecast: Ripple, Cardano and Solana stabilise as downward momentum shows signs of exhaustion7British Pound: BoE rate hikes gain support from resilient data – BBH8Japanese Yen gains respite as officials caution against rapid currency moves9EUR/GBP Price Forecast: Rejection at 0.8370 leaves pair consolidating above 0.8350
Connect With Us
The information provided on this website is of a general nature only and does not constitute personal financial advice. Before acting on any information on this website, you should consider the suitability of the information in relation to your objectives, financial situation and needs. Investing in CFDs and FX Margin Contracts carries significant risks and is not suitable for all investors. You may lose more than your initial deposit. You do not own, or have, any interest in the underlying asset. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. It is important that you read and consider the disclosure document before you acquire any product listed on the website. The information and advertisements offered on this website are not intended for use by any person in any country or jurisdiction where such use would be contrary to local laws and regulations. The Products and Services offered on this website are not intended for residents of the United States, Malaysia and Thailand.
TMGM is authorized and regulated in various jurisdictions.
Trademax Australia Limited, trading as TMGM, is regulated by the Australian Securities and Investments Commission (ASIC), AFSL no. 436416 and is located at Level 28, One International Tower, 100 Barangaroo Avenue, 2000 Sydney, NSW Australia.
Email: support@tmgm.com.au
Trademax Global Limited, trading as TMGM, is authorized and regulated by the Vanuatu Financial Services Commission (VFSC), registration number 40356 and registered at 1276, Kumul Highway, Port Vila, Vanuatu, Republic of Vanuatu.
Email: support@tmgm.com
Trademax Global Markets (SE) Limited, trading as TMGM, is authorized and regulated by the Financial Services Authority (FSA) of Seychelles, with license number SD224. The company is registered at Office No 13, Providence Estate ABIS Centre, Mahe, Seychelles.
Email: support@tmgm.com
Trademax Global Markets (International) Pty Ltd, trading as TMGM, is authorized and regulated by the Financial Services Commission, Mauritius (FSC) with license no. GB22201012, and registered at 33, Edith Cavell Street C/o IQ EQ Fund Services (Mauritius) Ltd Port Louis, 11324 Mauritius.
Email: support@tmgm.com
Copyright © TMGM. All rights reserved