ECB Prepares for Second Interest Rate Hike Amid Ongoing Inflation Pressures

The European Central Bank (ECB) is expected to raise its key interest rate by 0.25 percentage points next week, taking it to 2.5%, in an effort to combat rising inflation and energy prices due to the ongoing war in the Middle East.

According to Bloomberg, the ECB's decision is driven by eurozone inflation exceeding 3.3% in August, significantly above its 2% target.

Lithuanian Central Bank Governor Gediminas Simkus has suggested that a single rate hike may not be sufficient to curb prices, and analysts at JPMorgan, Societe Generale, and BNP Paribas have revised their forecasts to anticipate an additional interest rate hike later this year.