High oil prices could force ECB to raise rates further, warns top policymaker

A top European Central Bank (ECB) policymaker has warned that persistently high oil prices could necessitate further interest rate increases. The policymaker stressed that the ECB's policy would be guided by high and rising inflation risks, particularly if higher energy costs begin to translate into broader price or wage increases, known as "second-round effects." Investors are currently anticipating another quarter-point rate hike to 2.75% by the end of the year, followed by yet another in the first half of 2027.