world-economy

ECB Signals September Rate Increase Unless Inflation Trajectory Shifts

The European Central Bank is prepared to raise interest rates in September if eurozone inflation does not show marked improvement, according to officials familiar with the governing council's stance. The decision reflects growing concern about persistent price pressures across the currency bloc. Central banks globally remain divided on monetary policy direction. Mexico's inflation slowed in early July, prompting its central bank to maintain current borrowing costs. Turkey kept rates steady despite energy price volatility from Middle East tensions threatening its disinflation progress. South Africa held rates to support growth after revising inflation forecasts lower, though warned of potential increases if geopolitical shocks persist.