ECB Weighs Rate Hikes as Middle East War Drives Oil Higher
The ECB faces new inflation risks as Middle East conflict pushes oil prices toward 120 dollars. Traders now bet on potential interest rate hikes later this year.
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The European Central Bank (ECB) is preparing for its upcoming policy meeting next Thursday amid a volatile landscape where surging oil prices threaten to disrupt previous economic forecasts. The conflict in the Middle East has brought back concerns of an energy-driven inflation shock, reminiscent of the market instability seen after the invasion of Ukraine by Russia.
