Market Analysis: European Central Bank may raise inflation expectations for 2026.

Macro analyst Melanie Debono pointed out in a report that although the overall inflation rate in November was lower than expected, the European Central Bank is still expected to keep interest rates unchanged this week. The revised overall inflation rate in the Eurozone for November was 2.1%, lower than the initial estimate of 2.2% and lower than market expectations. Debono stated that inflation is expected to slightly increase in December, and the year-end inflation level will be higher than expected, which may prompt the European Central Bank to raise its inflation forecasts for next year. The average inflation rate for 2026 is expected to be 1.9%, higher than the European Central Bank's current forecast. "This should be enough to prevent the European Central Bank from further easing monetary policy in the new year, especially in the case of the accelerated GDP growth that we anticipate," Debono said.