ECB Hikes Rates Again Amid Rising Energy Prices

The European Central Bank (ECB) has shown its commitment to tackling inflation by raising borrowing costs yet again. This move comes as energy prices surge, threatening a return of high inflation levels in the euro zone.

In an effort to curb inflation, which remains above the 2% target, the ECB has raised policy rates aggressively over the past several years. The latest rate hike was expected and saw borrowing costs increase by 25 basis points.

Goldman Sachs, Citigroup, and Barclays are forecasting further rate hikes from the ECB, with some predicting an additional increase in March 2027. The banks' economists stress that the longer inflation remains high, the greater the risk it becomes self-sustaining.