The issue of interest rate rises is far from over. (...) This is because key factors driving interest rates continue to shape the market, foremost among them rising energy costs, which are feeding through to producer and consumer prices and pushing up inflation.

“It is understandable that the ECB is keeping interest rates at their current level. It had already raised rates on 10 September. Stable interest rates are good for the German economy and for the surprisingly strong growth. Thanks to stable interest rates, businesses could invest more and create new jobs. Furthermore, they are a boon for the property market, as financing – and thus the purchase of private homes – remains more affordable.

However, it may well be that, with this decision, the ECB is merely granting the rise in interest rates a brief respite. The issue of interest rate rises is far from off the table. If necessary, the ECB might feel obliged to raise interest rates again at its next monetary policy meeting on 17 December. This is because key drivers of interest rates continue to shape the market, foremost among them rising energy costs, which are feeding through to producer and consumer prices and pushing up inflation.”