ECB to hike rates as Mideast war pushes up inflation
The European Central Bank is expected to hike interest rates this week for the first time in two and a half years as the Iran war energy shock stokes inflation.
The ECB has kept borrowing costs on hold for some time as eurozone price rises had been largely under control.
But the U.S.-Israeli war against Iran and near total closure of the Strait of Hormuz has sharply pushed up global energy costs, feeding into higher inflation.
Consumer price rises in the 21 countries that use the euro accelerated to 3.2 percent in May, above the ECB's two-percent target.
