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2026-09-18 22:36:11
[ECB Officials Pave the Way for Further Rate Hikes, Possible Action as Early as October] European Central Bank (ECB) officials are preparing for further monetary tightening, hinting at possible action as early as October to combat mounting inflationary pressures. With prices in the 21-nation eurozone rapidly approaching 4% and the economy performing better than expected, policymakers are arguing that interest rates need to continue rising. The ECB has already raised rates twice since the Iran war drove up energy costs and is currently the most hawkish central bank among the G7 economies. Data released on Friday highlighted this challenge: in August, household expectations for inflation rose across all maturities tracked by the ECB. While wage demands and other factors have not yet reacted significantly to rising oil and gas prices, officials are advocating for precautionary measures to prevent inflation from taking hold.
