ECB rate hike path nears end; Greek economy poised for relief

The ECB is set to raise its main refinancing rate from 2.5% to 2.75% in December, the third consecutive hike, as it seeks to bring Eurozone inflation down from 3.8% to 2%. However, market signals suggest this may be the final increase, as government bond markets are already tightening liquidity. This is particularly positive for Greece, which is more sensitive to ECB policy rates than to sovereign bond yields.