ECB Set to Hike Rates as Inflation Concerns Resurface

The European Central Bank (ECB) is expected to raise its deposit rate by 25 basis points at its monetary policy meeting on the 10th. This move would bring the rate from 2.25% to 2.50%, with all 65 economists polled in a Reuters survey projecting the hike.

The ECB's decision comes as inflationary pressures resurface, driven by a three-year high Eurozone August consumer price inflation of 3.3%. Energy prices surged 14.3% year-over-year, primarily due to the Middle East conflict.

Analysts at JPMorgan, Societe Generale, and BNP Paribas have revised their forecasts to include an additional ECB rate hike in December, indicating a preemptive tightening stance by the ECB.