ECB Governors Pencil In Another Rate Hike as Soon as September

European Central Bank (ECB) policymakers meeting last month thought they would need to raise interest rates once more, according to the ECB's account of the July meeting. The bank kept interest rates on hold at 2.25%, having raised them for the first time in nearly three years in June to combat a war-led rise in energy prices.

The ECB's decision to maintain rates steady was described as a 'pause' in rate hikes, with policymakers pencilling in a future rate increase, possibly as soon as September. They believed another hike would be necessary unless the inflation outlook improved significantly.

With inflation at nearly 3%, the ongoing Iran conflict, and signs of resilience in the euro zone economy, ECB governors are now ready to raise the policy rate again to 2.50% on September 9-10, sources told Reuters earlier this week.