[ECB Plans Rate Hike to Tackle Energy Shock Inflation, Potentially Marking First Tightening Since 2023] BlockBeats News, June 11 – The European Central Bank (ECB) is expected to announce a rate hike on Thursday, marking the first increase since 2023, in response to energy price shocks triggered by Middle East conflicts. The market widely anticipates that the ECB deposit rate will be raised from 2.00% to 2.25% to curb upward inflationary pressure caused by constrained energy supply due to tensions in the Strait of Hormuz. Data shows that the Eurozone's inflation rate rose to 3.2% in May, significantly exceeding the ECB's 2% policy target, with rising energy prices being the primary driver. This policy adjustment comes against the backdrop of economic pressure in the Eurozone, where the economy contracted in the first quarter. Some economists warn that the rate hike could further weigh on growth and consumer confidence. Analysts point out that the Federal Reserve and the Bank of England have yet to tighten policies in tandem, and the ECB's proactive move may reflect its heightened sensitivity to energy-driven inflation. The market will closely watch President Lagarde's subsequent statements to assess whether this marks the beginning of a new tightening cycle. [Original Link]