ECB set to hike interest rates as Iran war flares anew
The European Central Bank is expected to raise interest rates again this week as renewed fighting in the Middle East pushes up energy costs and risks further stoking inflation.
Inflation in the 21-nation eurozone, which is heavily dependent on energy imports, hit a three-year high of 3.3 percent in August, substantially above the ECB’s 2 percent target.
And with fears growing prices will spiral even higher, the central bank is set to hike its benchmark rate for the second time this year when it meets on Sept. 10.
“The ECB governing council looks certain to raise its deposit rate from 2.25 percent to 2.5 percent,” said Andrew Kenningham, chief Europe economist at Capital Economics.
