ECB Warns of Possible Rate Hike as Energy Prices Remain High

The European Central Bank (ECB) is keeping a close eye on inflation and may need to raise interest rates again if high energy prices start affecting other areas. According to ECB policymaker Gabriel Makhlouf, there are currently no signs of second-round inflation effects, but this could change if energy costs remain elevated.

Makhlouf warned that raising interest rates 'a great deal more' risks damaging economic growth. The ECB has already hiked interest rates twice this year to combat rising inflation, which is currently above its target rate.