ECB keeps December rate hike on table amid mounting inflation risks - Nikkei Asia

FRANKFURT (Reuters) -- The European Central Bank left interest rates unchanged in a well-telegraphed move on Thursday but maintained expectations for another hike in December with a warning that high and rising energy costs were fuelling inflation risks.

The ECB has raised rates twice this year to prevent an Iran war-induced energy price jump from becoming entrenched and has signalled that more may be needed, even if it was not in a hurry without evidence of dangerous second-round inflation effects.

In a decision published only hours after ECB President Christine Lagarde announced she would step down early, the ECB warned risks to inflation were skewed to the upside given a recent surge in oil and gas prices.