ECB Hints at Further Rate Hikes Amid Energy Price Pressures

The European Central Bank (ECB) has decided to keep borrowing costs at 2.25% after its latest meeting on July 23.

This decision was widely expected by markets, but what's more interesting is that the ECB left room for further rate hikes in the coming months.

The bank cited the widening conflict in the Middle East and its impact on energy prices as a reason to keep rates on hold.

Despite the pause, money markets still expect two more rate increases by year-end, which could bring interest rates to 2.50%.