The European Central Bank is widely expected to raise interest rates on Thursday as policymakers weigh renewed inflation risks from surging energy prices against signs of resilience in the eurozone economy, Reuters reported.
Brent crude has climbed over the past month, while European natural gas prices have risen to their highest levels since early 2023. The increase in energy costs has pushed eurozone inflation back above 3% in August, raising concerns that the latest price shock could slow the ECB's progress towards its 2% inflation target.
