ECB Keeps Rates Steady Amid Inflation Fears, Hike in September Now Almost Certain

The European Central Bank (ECB) has decided to keep interest rates on hold, avoiding any market volatility. This decision comes despite rising energy prices and recent inflation concerns. In fact, some analysts believe that this rate decision may have been a deliberate choice by the ECB to avoid rattling markets.

Headline inflation has actually decreased in recent times, and with few signs of overheating in the economy, keeping rates unchanged makes sense through the rearview mirror. The June hike was seen as an insurance move, but it's now almost certain that a rate hike in September will occur.