The European Central Bank leads the G7 hawkish camp, with interest rate hikes imminent.

The euro zone is about to raise interest rates, making the European Central Bank the vanguard of a global tightening wave sparked by the Iran war. The market expects the bank to raise interest rates by 25 basis points next Thursday, which will be the most notable policy move at present - among developed economies, only small central banks like Australia and Norway have taken similar actions before. US President Trump's military strike against Iran has caused extreme volatility in energy prices. The European Central Bank's move is aimed at curbing the risk of solidifying the highest inflation rate since 2023.