ECB Eyes Another Rate Hike Amid Energy Price Fears

The European Central Bank (ECB) is signaling that another interest rate hike could be coming in September as it tries to keep inflation under control. Oil and gas prices have climbed following renewed tensions in the Middle East, raising fears that higher energy costs could eventually push up the price of everything from electricity bills to everyday goods and services.

Peter Kazimir, Slovakia's central bank governor and a member of the ECB's decision-making council, said the bank will likely need to raise rates at least one more time to prevent inflation from picking up again. The warning comes after the ECB decided last week to keep rates unchanged but made it clear that another increase remains possible.

Kazimir warned that if inflation proves stronger and lasts longer than expected, the ECB may have to go further: 'We will need to tighten more in the coming quarters than is currently expected.'