BlockBeats News, June 11th, the European Central Bank (ECB) is expected to announce a rate hike on Thursday, marking the first increase since 2023 to address the energy price shock triggered by the Middle East conflict.

The market broadly expects the ECB to raise the deposit rate from 2.00% to 2.25% to curb the inflationary pressures stemming from the constrained energy supply due to the tense situation in the Strait of Hormuz.

Data shows that the Eurozone's inflation rate in May has risen to 3.2%, well above the central bank's 2% target, with the rising energy prices being a key driver.

This policy adjustment comes against the backdrop of a strained Eurozone economic growth, with the economy contracting in the first quarter. Some economists have warned that the rate hike may further dampen growth and consumer confidence.

Analysts point out that the Federal Reserve and the Bank of England have not yet synchronized their policy tightening, and the ECB's preemptive action may reflect its heightened sensitivity to energy-driven inflation. The market will closely watch President Lagarde's subsequent statements to assess whether a new tightening cycle is underway.