ECB Tightens Monetary Policy Amid Eurozone Inflation Concerns

The European Central Bank (ECB) has implemented its second monetary policy tightening since the beginning of the year, as inflation in the eurozone reached 3.3% in August.

The ECB forecasts eurozone economic growth at 0.9% in 2026, rising to 1.4% in 2027 and 1.5% in 2028, but warned that new energy shock scenarios could significantly impact growth and inflation.

The EU has spent over €24 billion extra on imported energy since military tensions escalated in the Middle East, with domestic production remaining unchanged.