ECB Hikes Rates for Second Time Amid Resilient Growth and Soaring Inflation

The European Central Bank (ECB) increased policy rates at its September meeting, marking its second rate hike since the start of the Iran war. The decision was in line with expectations, and the underlying growth momentum is expected to continue despite a resilient GDP growth performance.

However, inflation remains a concern as it rose to a three-year high in August due to energy shocks and higher commodity prices. This increase in policy rates aims to combat inflationary pressures and stabilize the economy.