🔻Consequences of Iran’s war; the European Central Bank between curbing inflation and supporting the economy

The European Central Bank is due to decide on interest rates this Thursday, as rising energy prices following the war between Iran and the United States have intensified inflationary pressure on the economies of eurozone countries.

According to the France news agency, eurozone inflation in September reached 3.8%, the highest level in the past three years; a figure that is far above the European Central Bank’s two percent target.

The bank, which has raised interest rates twice this year, now faces the challenge of how to curb the inflation caused by higher energy prices without further harming economic growth.

The European Central Bank is expected to keep interest rates unchanged at today’s meeting, although economists have raised the possibility of raising them again in December.