ECB Set for Second Rate Hike, But Economists Predict Short Campaign

The European Central Bank (ECB) is set to raise interest rates for the second time in September, according to a Reuters poll. The hike will be a quarter-point increase to 2.50%, up from 83% predicted last month.

Economists believe this will be the ECB's shortest rate-hiking campaign since 2011, when it raised rates twice due to sharply rising oil prices. Most predict that inflation will approach the target of 2% during next year.

Despite energy price rises and global bond yields increasing sharply over the past week, forecasters do not think these factors will trigger broad inflation pressures. The ECB is expected to focus on avoiding further pressure on a fragile economy.