ECB is expected to deliver one last rate hike next month

In a separate report, Germany’s economy ministry warned a 'generally expected recovery still failed to materialise in early summer'

ECB president Christine Lagarde has said its meeting on September 14 will be between a 10th straight increase and a pause. 

Unmoved by recent signs that inflation pressure is abating, economists continue to predict that the European Central Bank (ECB) will deliver one final increase in interest rates next month.

The deposit rate will be lifted to 4% in September from 3.75% now, a Bloomberg poll showed. At the same time, respondents reckon officials will start cutting borrowing costs in March, a month earlier than they previously thought.