ECB Prepares Second Rate Hike Amid Eurozone Inflation Surge

The European Central Bank (ECB) is set to raise interest rates for the second time next week, amid concerns about accelerating inflation in the eurozone.

Inflation in the eurozone accelerated to 3.3% in August, its fastest pace in nearly three years, and well above the 2% target. This has led policymakers at the ECB to reiterate their commitment to proactive monetary tightening.

The expected rate hike of a quarter of a percentage point on Thursday is seen as a further step towards cementing the ECB's position as the most hawkish of the G7 central banks, with investors pricing in a third increase by December.