ECB Prepares New Rate Hike Amid Eurozone Inflation Surge

The European Central Bank (ECB) is expected to raise interest rates again next week, with some officials considering further monetary policy tightening by the end of the year.

The ECB's decision comes amid rising inflation in the eurozone, which hit 3.3% in August, exceeding the central bank's 2% target for nearly three years.

Recent data show that core inflation unexpectedly slowed down, but officials seem unwilling to take risks due to criticism over their delayed response to the cost-of-living crisis in 2022.

The head of the Lithuanian central bank, Gediminas Šimkus, suggested that the September increase would not be enough, while Bundesbank President Joachim Nagel expressed caution regarding further steps.