ECB Signals Potential September Rate Hike Amid Geopolitical Tensions and Mixed Economic Signals

The European Central Bank (ECB) is signaling a possible rate change in September, with Executive Board member Philip Lane noting that the bank will review, adjust, and calibrate policy at each meeting. The decision comes as the Middle East conflict drives oil and gas prices higher, fueling inflation, while a measure of private-sector activity in the euro area has risen. However, consumer inflation expectations have reportedly lowered.