The European Central Bank is expected to raise interest rates by 25 basis points to 2.5%

The European Central Bank is expected to implement its second interest rate hike since the energy prices surged due to the Iran war, as inflation remains persistently above target.

Institutional surveys show that, except for one analyst, the rest expect the deposit rate to be raised by 25 basis points to 2.5% on Thursday. Policymakers are responding to last month's consumer price increase that surpassed 3%.