ECB to Raise Rates Again in September, But Then Hike Cycle May End

A Reuters poll of economists suggests that the European Central Bank (ECB) will raise interest rates for the second and final time on September 10, marking its shortest hiking campaign in 15 years.

Most economists surveyed believe energy price rises are not a broad inflation concern, and the ECB is unlikely to add further pressure on the fragile economy. 'We still find it hard to see, amid public finance woes and surging bond yields, that the ECB would really be willing to add more fuel to the fire,' said Carsten Brzeski, global head of macro at ING.

All 65 economists in the survey predicted a quarter-point increase in the deposit rate to 2.50%, with about 91% expecting it to end this year at that level and 78% seeing it staying there through the middle of next year.