The European Central Bank maintains a state of alert for interest rate hikes, preparing for the next increase.

The European Central Bank may temporarily postpone the second round of interest rate hikes next week, but does not rule out the possibility of raising interest rates in September. Prior to this, energy prices surged, prompting the central bank to raise borrowing costs in June. Officials had previously stated that peaceful negotiations between the U.S. and Iran could help curb the impact of conflicts on prices in the euro area. However, the Governor of the Bank of Greece, Yannis Stournaras, stated that with the resumption of hostilities and uncertainty in the shipping prospects of the Strait of Hormuz, inflation risks have returned to square one. The latest data after the June interest rate meeting is not enough to force the central bank to raise interest rates immediately this Thursday. Oil and gas prices are basically in line with the benchmark forecasts provided by policymakers last month, and the extent of inflation cooling is better than expected; the European Central Bank's bank lending survey to be released on Tuesday is also unlikely to significantly change the current situation.