ECB Hikes Interest Rates Again Amid Eurozone Inflation Surge

The European Central Bank (ECB) is set to raise interest rates again, this time by a quarter-point, as it continues to be the most hawkish central bank among the Group of Seven (G7).

Recent data showed eurozone inflation jumped in August to 3.3%, the fastest pace in almost three years and noticeably above the 2% target.

The ECB has been unambiguous about the need to tighten pre-emptively, unlike the US Federal Reserve which has a relatively sanguine view on inflation.

While some economists have suggested that Thursday's tightening will be the last for now, analysts at JPMorgan, Societe Generale, and BNP Paribas are changing their forecasts to predict another step in December.