ECB Set to Raise Interest Rates Amid Rising Eurozone Inflation

The European Central Bank is expected to raise interest rates by 25 basis points at its Governing Council meeting in Frankfurt, bringing its benchmark deposit facility rate up to 2.50%.

This move comes as eurozone inflation picked up to 3.3% in August, with a 14.3% jump in energy components driving the increase.

The ECB's updated staff projections are expected to reflect upward revisions to medium-term HICP inflation, signaling that restrictive policy will need to be maintained well into autumn to prevent second-round wage effects.