ECB to hike rates as Iran war fuels fresh inflation fears
- The European Central Bank raised its policy rate to 2.5% from 2.25% on Thursday, September 10, 2026, marking its second hike this year to combat an energy-driven inflation surge triggered by the Iran war.
- Attacks between the U.S. and Iran since late August have disrupted energy transit, sending oil and gas prices soaring again and reviving fears of widespread price hikes across the fuel-importing euro zone.
- Euro zone inflation hit 3.3% in August with energy costs surging 14.3%, while markets priced in a 100% chance of the rate increase according to LSEG data.
- Jonathan Pryor, head of private markets at Marex FX, warned the ECB could "get caught out" if it miscalculates a "one and done" strategy while policymakers signaled readiness to tighten further.
- ECB President Christine Lagarde faces questions regarding her tenure, scheduled until October 31, 2027, amid investor uncertainty over whether this hike signals a "one and done" move or a protracted cycle.
80 Articles
80 Articles
European stocks rose today at the start of trading, after yesterday's plunge. Investor attention should be focused on the European Central Bank meeting, where interest rates are expected to rise. The pan-European STOXX 600 index was up 0.1 percent at 641.23 points at 10:08 a.m. Germany's DAX was unchanged, Britain's FTSE gained 0.1% and France's CAC 40 registered a rise of 0.3%. In the previous session, European stocks dived 1.4 percent after Br…
Reformatorisch Dagblad
The AEX index on the Damrak started Thursday with a small loss. Investors remained cautious following the heavy price losses the previous day. These followed a sharp rise in oil and gas prices due to the escalation of violence in the Middle East. Consequently, fears that higher energy prices will further fuel inflation increased.
On the day of the ECB's interest rate decision, investors are looking primarily to Berlin today. Meanwhile, the tense situation in the Middle East is driving the oil price up further.
The decision will increase the pressure on the budgets of the families, businesses and states of the euro area. Moreover, the Minister of the Environment again sets aside the price of fuels.
As military tensions in the Middle East and inflationary pressures created by oil prices exceeding $100 per barrel pulled global markets into negative territory, investors' focus is now on the interest rate decisions of the Turkish Central Bank (TCMB) and the European Central Bank (ECB), which will be announced today, as well as critical inflation data from the US.
After yesterday's price losses, the DAX is unlikely to start trading in a changed way. Investors are eagerly awaiting the ECB's interest rate decision. They hope in particular for further monetary policy.
Coverage Details
Bias Distribution
- 43% of the sources are Center, 43% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
