The European Central Bank kept its benchmark interest rate at 2 per cent today, leaving markets awaiting the ECB's monetary policy statement to see if expectations of a December rate rise are justified.
Inflation risks are rising worldwide due to strong oil prices, and the ECB has upped its anti-inflation talk, warning it will not hesitate to raise rates from 2 per cent if the energy costs feed into higher wage demands and consumer prices.
Output is also showing positive signs after the euro zone economic sentiment survey for October rose for a fifth month, and NTC Research data out today showed the fastest service sector growth for 15 months.
The US Federal Reserve raised rates on Tuesday for the 12th time in a row and is expected to keep going, and Norway's central bank tightened yesterday.
Just a few months ago, some euro zone politicians were pushing for a rate cut to kick-start sluggish growth, and many have made it clear a rate rise would be unwelcome.