ECB to Hike Rates Again, But Economists See No Further Action

The European Central Bank (ECB) is poised to raise interest rates for the second time in September, but it's likely to be the last hike of its rate-hiking campaign this year. According to a Reuters poll, all 65 economists surveyed predicted that the ECB will increase its deposit rate by a quarter-point to 2.50% next week.

This move would mark the shortest rate-hiking campaign in 15 years, with the previous record held since 2011 when the ECB raised rates twice in response to rising oil prices.

Economists believe that inflation will approach the ECB's 2% target during the course of next year, which is why they don't expect further rate hikes. However, there is an upside risk to their inflation forecast, and the ongoing war in Iran could potentially change the situation.