ECB expected to deliver first-ever 75bp rate hike
Record-high inflation of 9.1% in August and a weak exchange rate add pressure
The European Central Bank (ECB) is expected by most analysts to deliver its first-ever 75 basis point interest rate increase on September 8.
Inflation reached a new record high of 9.1% in August, way over the 2% target. Energy prices remained the main factor boosting prices in the region. According to official statistics, this component increased year on year by 38.3%.
Nonetheless, there are increasing signals of wider inflationary pressures. Indeed, core inflation was 4.3%, up from 4% in July
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