ECB Prepares for Quarter-Point Rate Hike Amid Elevated Oil Prices

The European Central Bank (ECB) is expected to raise interest rates on Thursday, with a quarter-point move to 2.5% seen as a done deal.

This decision comes as global oil prices remain high due to the US-Iran tensions, keeping inflation elevated and prompting the ECB to err on the side of caution.

Economists believe that while there is little room for further rate increases, another hike may be necessary by December or next year to combat energy-driven inflation.