Global markets focus on ECB's interest rate decision

Investors on Thursday focused on European Central Bank's (ECB) interest rate decision amid inflationary concerns after global stock markets closed midweek mostly with decreases.

While high inflation rates continue to be the main topic on global markets, international institutions, such as the World Bank and OECD, lowered growth forecasts for the world economy one by one.

On Wednesday, the OECD lowered its world GDP growth rate forecast from 4.46% to 3% for 2022.

Analysts expect signals from the ECB for tightening monetary policy and possible interest rate hikes this year.

After loosening monetary policies to tackle with the pandemic's impact on economy, in 2022, several central banks, including the Fed and the Bank of England, decided to increase interest rates to fight with the high inflation.

European countries are waiting for a move from the ECB against inflation; Joachim Nagel, the governor of Germany's Central Bank, said in May that the ECB should hike interest rates to curb the inflation.

Meanwhile, energy prices continue to increase. Brent crude oil rose to $123.9 per barrel and Texas crude oil to $122.3 as of 0544GMT.

The ECB will announce the decision at 1145GMT and Governor Christine Lagarde will give a speech at 1230GMT.