ECB Prepares for Next Rate Hike as Inflation Concerns Grow

European Central Bank (ECB) policymakers are expecting further policy tightening in the coming months to combat rising inflation, which is being fueled by a war-driven surge in gas and oil prices.

After raising borrowing costs for the second time this year on Thursday, ECB officials expressed growing concern about inflation's potential impact on the broader economy. They believe that higher interest rates may be necessary to prevent price pressures from spreading further.

The next meeting of the ECB is scheduled for October 29, and sources suggest that policymakers could move to raise rates again at this meeting if incoming data warrants it. However, a spokesperson for the ECB declined to comment on potential future moves.

ECB President Christine Lagarde maintained her stance that decisions will be made 'meeting-by-meeting' and 'data-dependent', indicating that no specific actions are being anticipated in advance of upcoming meetings.