ECB tees up September rate hike as inflation risks loom

Investing.com -- The European Central Bank is gearing up to squeeze borrowing costs further this September if inflation refuses to cooperate, sources told Bloomberg.

With Middle East geopolitical tensions threatening to stoke consumer prices, another 25-basis-point hike is rapidly emerging as the path of least resistance for policymakers.

Still, officials are keeping their options open. The central bank’s data-dependent, meeting-by-meeting mandate means a surprise peace deal or a sudden slump in economic activity could easily derail plans for a hike. But unless conditions dramatically cool, central bankers appear ready to tighten the screws.

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