The European Central Bank (ECB), the eurozone’s monetary authority, is expected to raise its key interest rate on Thursday for the second time since the war between the U.S. and Iran began. The move comes as annual eurozone inflation climbed to 3.3% in August, its highest level in almost three years and well above the ECB’s 2% target. Policymakers are expected to signal caution about additional increases that could push borrowing costs high enough to restrain economic activity. Despite the surge in energy prices after the war closed the Strait of Hormuz, there have been no signs of the second-round effects that policymakers fear, such as broader price pressures spreading through the economy.