ECB Set to Hike Rates Amid Soaring Energy Prices

The European Central Bank (ECB) is widely expected to raise interest rates on Thursday for the second time this year, driven by surging energy prices due to the ongoing US-Iran conflict.

Alessia Berardi, head of global macroeconomics at the Amundi Investment Institute, notes that 'inflation remains elevated and should stay sticky over the next few months before easing toward the second half of next year.'

Meanwhile, traders will closely monitor US PPI inflation data on Thursday for more clues about the US interest rate path.