ECB May Raise Rates Further on Energy Risks
European Central Bank officials signal further rate increases may be needed if energy prices continue to rise. Bundesbank and Estonian central bank heads stress decisions depend on market developments.
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European Central Bank officials opened the door to further interest rate increases on Friday morning as war-fuelled energy prices threaten broader inflation across the euro zone. The central bank raised borrowing costs to 2.50% on Thursday, marking its second hike this year. Money markets have priced in at least three more increases over the coming year as energy costs accelerate.
