European Central Bank expected to hold steady as economy slows and inflation soars

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European Central Bank expected to hold steady as economy slows and inflation soars
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Slowing growth and higher inflation could render October's ECB meeting more eventful than originally anticipated.

Earlier this month, ECB Chief Economist Philip Lane called into question whether interest rates would rise at the end of next year, given that the central bank has said it won't lift rates until inflation is at 2% over the medium term.

Euro zone inflation hit a 13-year high in September, mainly pushed up by higher energy prices, rising car prices and higher costs for accommodation. "The September figures provide tentative evidence that the catch up part of inflation is an one-off and therefore temporary, while the price pressure emanating from bottlenecks is, so far, not abating."

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