Global Market: ECB seen holding rates steady while keeping September hike option open

The European Central Bank is expected to hold interest rates steady at its Thursday policy meeting while keeping a September hike option open. Softer eurozone inflation, wage growth, and economic activity indicators have eased the urgency for immediate tightening, though oil prices above $90 per barrel amid Middle East conflict complicate the outlook. Financial markets are currently pricing in two to three additional ECB rate hikes, with one fully priced by October and another by April 2026.