EC Bank Raises Rates by 25 basis points amid Global Inflation Concerns
The European Central Bank hiked rates by 25 basis points as persistent inflation and robust growth threaten further rate hikes globally.
Continued inflation pressure and strong economic growth have increased risks of major central banks raising interest rates, according to the economy report. Rising energy prices and ongoing Middle East tensions without signs of easing exacerbate these concerns. The European Central Bank raised its benchmark interest rate by 25 basis points on Thursday. This move aligns with upcoming meetings expected next week by the Federal Reserve and the Bank of Japan, which may also consider tightening monetary policy. In Australia, the Reserve Bank lifted rates a third time this year to 4.35 percent, fully reversing last year's cuts and keeping room for additional increases given high July inflation data.
