ING now expects the Federal Reserve and the European Central Bank (ECB) to raise interest rates once each before the end of the year, replacing its earlier forecast that both would keep rates unchanged. ING economists said the latest Federal Reserve meeting on Wednesday and the ECB meeting last week indicated that neither institution was likely to pursue the very accommodative monetary policy previously anticipated. Both central banks are confronting a supply-side shock (economic disruption caused by constrained supply) triggered by soaring energy prices, although the broader impact on the economy remains limited so far. The economists also pointed to memories of sharply rising inflation in 2022 and the delayed monetary-policy response. They expect both institutions could raise rates in December.