European Central Bank: Gradual tightening path – Nordea

Nordea’s report highlights that Euro-area headline inflation rose to 4.0% in October, driven largely by energy and a rebound in food prices. Core inflation stayed at 2.5%, with modest second-round effects so far. Nordea expects two more ECB rate hikes, noting downside risks from tighter financing conditions and weaker economic activity but still seeing a clear case for gradual tightening.