Central Banks Pivot to Rate Hikes as Oil and Inflation Resurge

The European Central Bank is widely expected to raise interest rates by 25 basis points to 2.5% on Thursday, marking its second hike since June as it opts for an "insurance" move against persistent inflation.

Behind the Data

Euro zone inflation climbed back above 3% in August, driven by resurgent energy costs. Brent crude has surged over the past month, while European gas prices hit their highest level since early 2023. The U.S.-Iran war continues to cast a...