ECB Prepares for Second Interest Rate Hike This Year

According to Carsten Brzeski, global head of macro research at ING, the European Central Bank (ECB) is expected to raise interest rates by 25 basis points next week.

This would mark the second hike this year as policymakers weigh persistent energy-driven inflation against signs of economic resilience.

The eurozone economy has shown 'an almost unexpected resilience' to the war in the Middle East, partly aided by Asian competitors losing orders to European rivals following the closure of the Strait of Hormuz, as well as long-planned fiscal stimulus.

Headline inflation has continued climbing and is expected to stay above 3% year-on-year for the rest of the year.