ECB's Nagel Signals December Rate Hike Still Possible Despite October Pause Case

ECB policymaker Nagel has kept a December rate hike in play despite the case for an October pause, citing persistent inflation pressures beneath recent energy-driven surges. High inflation is not yet triggering second-round effects in wage setting, Nagel told markets.

Eurozone PMI data confirmed composite growth at 53.1, the strongest in over three-and-a-half years, with services PMI at 53.0. ECB's Lane noted that recent energy price surges are a drag on growth and may limit the need for further tightening, injecting flexibility into rate-path expectations.

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