ECB Raises Rates for Last Time This Year

According to a Reuters poll published on Thursday, the European Central Bank (ECB) will raise interest rates for the second and final time in September. The predicted rate hike will be a quarter-point increase to 2.50 percent, up from 1.75 percent.

The survey of 65 economists showed that most expect energy price rises not to trigger broad inflation pressures. However, global bond yields have risen sharply over the past week, and forecasters are uncertain about the ECB's next move.

Carsten Brzeski, global head of macro at ING, said that it's difficult to envisage the ECB risking a recession to tackle what is still a textbook supply-side shock. He expects a September quarter-point rise but no more after that.