ECB Expected to Raise Rates for Second Time Amid Rising Inflation Concerns

The European Central Bank (ECB) is expected to raise interest rates for the second and final time in its shortest cycle of rate increases in 15 years, according to a Reuters poll of economists.

The poll, conducted between August 31 and September 3, found that most economists believed higher energy prices would not trigger broad-based inflationary pressures despite renewed escalation of the war in the Middle East.

Analysts monitoring the central bank maintained that it would be reluctant to apply further pressure on an already vulnerable economy, even as global bond yields rose sharply over the past week.

The Eurozone inflation accelerated to 3.3 per cent in August, moving further away from the ECB's 2 per cent target, largely driven by energy costs.