Economists: The European Central Bank is expected to conduct a preemptive rate hike this week.

Economists Pia Fromlet and Marcus Widen from SEB stated in a report that the European Central Bank is expected to raise policy rates by 25 basis points at its meeting on Thursday. They said, "As indirect and second-round inflation effects have not yet materialized in the data, the inflation risks stemming from rising energy prices will lead to a precautionary rate hike." They anticipate that ECB President Christine Lagarde will spend "a lot of time" discussing the updated staff forecasts and risk assessments at the press conference. "Uncertainty will be the focus, thereby supporting a 'wait-and-see' strategy for the future," these economists said; they expect the ECB not to make any advance commitments to further rate hikes.