Published on October 4, 2022 Inflation in the Eurozone presented year-on-year growth of 10% in September, exceeding the figure estimated by analysts (9.7%) and the figure for the previous month (9.1%). which facilitates another rate hike of 75 bp by the ECB at the end of October meeting. The unemployment rate in the region during the month of August remained at 6.6%, in line with the figure for the previous period. Over the past week all market attention has been focused on the pressure on the Gilts curve and on the British pound. The sovereign debt suffered at an unprecedented rate after the first reactions last Friday, once the fiscal plan was presented by the new government in the United Kingdom and which has been questioned by the International Monetary Fund. The 100 bps widening of the long part of the curve forced the intervention of the Bank of England, which announced mid-morning the purchase of long-term Gilts at a rate of 5mm per day until October 14, in addition to delaying the start of of the QT balance sheet bond sale process, given the potential collapse of the British pension fund system. In principle, the measure is temporary, but there are many doubts as to whether or not it will be enough to contain the market. Analysts these days foresee, on the one hand, the delay or downward modification of the plan presented by Truss, although the reality is that, for now, Truss and Kwarteng have not shown a predisposition to change. On the other hand, the BoE may have to hike rates sharply (+125bps or more) before the next meeting on November 3rd. INFORMATIONTitleInflation reaches 10% in the eurozone for the first time in the history of the euroDescriptionInflation in the Eurozone presented year-on-year growth of 10% in September, exceeding the figure estimated by analysts (9.7%) and the data from the previous month (9.1%), which facilitates another rate hike of 75 bp by the ECB at the meeting at the end of October. Author GLOBALCAJA