Major Central Banks Eye Rate Hikes Amid Rising Inflation Pressures

The European Central Bank (ECB), the Bank of Japan (BOJ), and the Federal Reserve (Fed) are all considering interest rate hikes within a short timeframe. The ECB is expected to raise its deposit rate by a quarter point to 2.5% from 2.25% at its meeting in Berlin on Thursday.

All but one analyst in a Bloomberg poll forecasts the move, and 83% of economists surveyed by Reuters between August 31 and September 3 expect a quarter-point hike next week. This outlook has strengthened since August, with 72% backing a hike ahead of the July meeting when the ECB held rates steady.

The last time the central bank raised rates was in June. Euro area inflation climbed above 3% last month, reaching its highest level in nearly three years. Price pressures are unlikely to ease significantly in the near term, making a hike more likely.