ECB forecasts wage growth of up to 2.8% in 2027 and admits new interest rate hikes

The European Central Bank projects negotiated wages in the eurozone will grow by 2.7% in the second half of 2026, peaking at 2.8% in the first half of 2027 before slowing to 2.4% in the third quarter. Given inflation reached 4% in October, driven largely by a 20.8% rise in energy costs, the ECB signaled that further interest rate increases may be decided at its next monetary policy meeting in December.