ECB poised to raise rates amid eurozone inflation surge

The European Central Bank is widely expected to raise its deposit rate by 25 basis points to 2.5% on Thursday as surging energy prices push eurozone inflation above 3%. While the September rate increase is largely anticipated by markets, investors will closely monitor the ECB's forward guidance on additional rate hikes.

Markets will also focus on the central bank's updated inflation and growth forecasts, potential currency-market risks, and the trajectory of rising government bond yields. These signals will be crucial in shaping expectations for monetary policy in the months ahead.