ECB Minutes: Rising Market Yields May Substitute for Further Rate Hikes

Key Facts

ECB September meeting minutes suggest rising long-term market yields could reduce the amount of additional policy tightening required. ActionForex reported that all Governing Council members backed the latest 25 basis point rate increase during the September meeting, while the bank deliberately avoided signaling whether this move marked the end of the tightening cycle.

Officials noted that the repricing of long-term bonds supports the intended monetary policy stance, as model estimates suggest higher long-term rates could have a material effect on growth and inflation. This assessment follows data from October 2, 2026, which showed the Eurozone annual inflation rate at 3.8%, while the core inflation rate stood at 2.5%.