ECB Prepares September Rate Hike as Inflation Concerns Persist

The European Central Bank is likely to raise interest rates in September to combat inflation and maintain economic stability, according to sources close to the matter.

The ECB's next meeting is scheduled for September, and policymakers are ready to increase borrowing costs by 0.25 percentage points, from 2.25% to 2.50%, to contain the effects of the Iran conflict on energy prices.

This decision comes after a rate hike in June, which aimed to prevent inflation from spreading too widely in the economy. The current inflation rate is nearly 3%, and policymakers believe that another increase will help maintain control over price growth.