The European Central Bank is expected to raise interest rates by 0.25% next week, becoming the first major central bank in the G7 to tighten monetary policy. The market expects at least one interest rate hike within the year. In contrast, the Bank of Canada may keep interest rates unchanged, while the Federal Reserve and the Bank of England are expected to remain inactive this month. The European Central Bank will also release quarterly economic forecasts to assess the impact of energy shocks on regional economies.
