ECB poised for another big rate hike as inflation soars

FRANKFURT, Sept 08 (Reuters): The European Central Bank will raise interest rates again on Thursday to fight runaway inflation and, with a big move and a record one under consideration, the only question is by how much.
Concerned that sky-high inflation is getting increasingly entrenched, policymakers are scrambling to keep a lid on the bloc's most damaging bout of price growth in nearly half a century as it eats up household savings and weighs on business output.
Ultimately, the choice will be between a 50 and a 75 basis point increase in the zero per cent deposit rate, with expectations now leaning towards a bigger increase but not with full conviction.
The larger move would be the biggest ever increase of the ECB's benchmark rate, but regardless of the outcome the bank's direction of travel will be clear.
More hikes are factored in for coming months as price pressures are consistently exceeding even the most pessimistic forecasts.
ECB to decide between 50 and 75 basis point interest rate increase
Buoyed by hawkish comments from conservative policymakers, markets now see a more than 80 per cent chance of a 75 basis point hike. A slim majority of economists polled by Reuters are also predicting the larger increase.