Eurozone Rate-Setters to Hike Borrowing Costs as Energy Prices Jump
10 Articles
10 Articles
Eurozone rate-setters to hike borrowing costs as energy prices jump
With renewed Middle East clashes stoking energy prices and putting upward pressure on inflation, the European Central Bank is expected on Thursday to raise interest rates for the second time this year.
Against the backdrop of the strong rise in energy prices caused by the Middle East war, the European Central Bank is expected to increase monetary policy interest by 0.25 percentage points on Thursday, according to Agerpres, the second increase in interest decided by the ECB this year.
Amid persistent inflation in the Eurozone that is showing upward trends and escalating military operations in the Middle East that are causing concern in the energy market
Energy prices have surged due to Middle Eastern conflicts, increasing inflationary pressure and putting the ECB at risk of raising interest rates to 2.5% and signaling a willingness to further tighten monetary policy. The ECB is likely to raise interest rates in September. The ECB has unveiled a new design for all euro banknotes. Rising Eurozone inflation is reinforcing expectations of an ECB interest rate hike.
At the current Governing Council meeting, a key rate hike to 2.5 percent is expected. Inflation remains high due to rising energy prices.
The European exchanges closed down on Wednesday (9) under pressure from the new escalation between the United States and Iran and from the advance of oil and natural gas. The pan-European index Stoxx 600 closed with a drop of 1.41%, at 640.41 points, at the lowest level since the end of July. In London, the FTSE 100 closed [...]
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