ECB Hikes Rates for Second Time Amid Ongoing Conflict

The European Central Bank (ECB) raised interest rates at its September meeting, marking its second rate hike since the outbreak of the Iran war. The decision was expected by many, but still significant in a challenging economic environment. GDP growth has been resilient despite the ongoing conflict, with underlying momentum expected to continue.

The primary drivers of inflation remain the energy shock and higher commodity prices, which pushed inflation to a three-year high in August. This development is closely watched by investors, as it impacts monetary policy decisions across the globe.