European Central Bank policymakers are increasingly prepared to raise interest rates at their September meeting as they seek to contain inflationary pressures stemming from the ongoing Iran war, while showing little inclination to signal additional tightening beyond that, according to three sources familiar with the discussions who spoke to Reuters.
The ECB raised borrowing costs for the first time in nearly three years in June, seeking to prevent a war-driven surge in energy prices from spreading more broadly through the euro zone economy. Policymakers now see another increase as increasingly warranted, with inflation close to 3%, the conflict continuing and economic activity proving more resilient than expected.
