ECB Rate Hike Bets Cemented as Euro Zone Inflation Surges

The European Central Bank (ECB) is likely to raise interest rates for the second time this year, following an uptick in euro zone inflation to 3.3% in August.

This increase, which was driven largely by higher energy costs, has solidified expectations of another rate hike on September 10, when the ECB will meet to discuss its monetary policy.

The ECB's own projections suggest that this rate hike will be a relatively easy decision, with financial markets already pricing in the move. However, investors are now focusing on the potential for further rate hikes down the line, as views diverge on just how deep the euro zone's inflation problems run.