Standard & Poor's Global: European and British central banks may raise interest rates in April to combat energy inflation.

Paul Watters, Director of European Credit Research at S&P Global Ratings, said that the European Central Bank and the Bank of England may raise interest rates as early as April to address inflation caused by energy supply shocks. He said, "The European Central Bank and the Bank of England will not ignore this inflation shock." Core inflation in the Eurozone and the UK is above 2%, exceeding the levels the central banks are willing to accept, so the likelihood of a rate hike is high. Data from the LSEG shows that the market currently expects a slightly higher than 60% probability of the European Central Bank and the Bank of England each raising interest rates by 25 basis points at their next policy meeting on April 30.