[Economists: ECB Likely to Raise Rates Again in September, Then No More] A Reuters poll released Thursday indicates that the European Central Bank (ECB) will raise interest rates for the second and final time on September 10, marking its shortest rate hike cycle in 15 years. Most economists in the survey believe that rising energy prices are unlikely to trigger widespread inflationary pressures. Despite renewed tensions in the Middle East in recent days and a sharp rise in global bond yields over the past week, forecasters focusing on the ECB maintain that the central bank is unwilling to add further pressure to the fragile economy. Carsten Brzeski, global head of macro at ING, expects the ECB to raise rates by 25 basis points in September and then stop. He stated, "Given the public finance difficulties and soaring bond yields, it's still hard to imagine the ECB really wanting to add fuel to the fire. In other words, it's hard to imagine the ECB being willing to risk a recession to deal with what is still a typical supply-side shock."
