ECB Eyes Further Rate Hikes Amid Inflation Concerns

The European Central Bank (ECB) is considering further policy tightening to combat rising inflation, according to two sources familiar with the matter. The policymakers have grown more concerned about inflation following a significant increase in gas and oil prices in recent months.

They believe additional rate increases may be necessary to prevent inflation from spreading across the broader economy. A policy move could occur as early as October 29, although any decision would depend on incoming data and developments in Iran.

ECB President Christine Lagarde told a news conference that she could not predict the next policy step, reiterating the bank's approach of making decisions meeting by meeting and based on data.