Tag: ECB

Asian equities rose on Thursday as traders turned their attention to the European Central Bank's monetary policy decision later in the day. The ECB is widely expected to raise interest rates by 10 basis points, its first hike in more than a decade. Oil prices also rose to a seven-year high, supported by supply concerns and the prospect of a prolonged conflict in Ukraine.

The European Central Bank expects inflation to remain above its 2% target in 2024, suggesting that it may need to continue raising interest rates. The ECB is also facing concerns about a possible recession, but it is likely to continue raising rates in order to bring inflation under control.

The European Central Bank is facing a tough decision on whether to hike interest rates amid mounting recession risks. The ECB has raised rates by 0.75 percentage points since July last year, but the war in Ukraine and rising energy prices are putting renewed upward pressure on inflation. The ECB is likely to pause its rate-hiking cycle at this week's meeting, but it will keep the door open for further tightening in the future if inflation continues to rise.