Frankfurt: The Governing Council of the European Central Bank convenes today for its regular policy meeting, amid widespread expectations of approving an increase in key interest rates for the first time since 2023, as inflation rates across the eurozone continue to climb.

According to Oman News Agency, the ECB is set to announce its interest rate decision later today, having maintained its deposit facility rate at 2 percent since mid-2025. The meeting comes as the eurozone has witnessed a notable surge in consumer prices, with the annual inflation rate reaching 3.2 percent in May, compared to 3 percent in April, surpassing the ECB's medium-term target of 2 percent.

The inflation surge is primarily attributed to rising energy and oil prices, alongside persistent increases in service costs, all of which have amplified inflationary pressures on the economies of eurozone member states. ECB President Christine Lagarde has affirmed on previous occasions the bank's readiness to take necessary measures to preserve price stability and rein in inflation.

An interest rate hike is expected to raise borrowing costs for individuals and businesses, thereby helping to curb inflationary pressures, though it may also negatively impact the pace of economic growth in the eurozone, which faces mounting economic challenges.