ECB expected to raise rates as energy costs push inflation higher

The European Central Bank is widely expected to raise interest rates by a quarter point on Thursday, taking its benchmark rate to 2.5%, as higher oil and gas prices push euro zone inflation back above 3%.

Economists say further increases could be limited because growth remains a concern. Services inflation and wage growth have eased, while August business activity showed the economy was holding up better than expected.

Rising global bond yields have also tightened financial conditions, adding pressure to borrowing costs across Europe. Policymakers are expected to focus on whether energy prices could create broader, longer-lasting inflation.

Read the full story at wincountry.com.