ECB Raises Rates Again, Warns Inflation Could Prove Longer Lasting

The European Central Bank (ECB) raised interest rates for the second time this year on September 10, responding to rising energy costs and inflation pressures across the euro zone.

ECB President Christine Lagarde described the rate increase as a 'no-brainer' and warned that inflation's return to the central bank's two percent target could be delayed further.

Lagarde stated, 'We believe inflation will be longer lasting than we had anticipated.'

The ECB raised its inflation projections only slightly, but some economists consider the newly released figures already outdated due to the latest rise in energy prices.

Investors now expect more than three rate increases over the next 12 months compared with between two and three before the meeting on September 10.