European Central Bank (ECB) policymakers are prepared to raise the policy rate to 2.50% from 2.25% at their Sept. 9-10 meeting, three sources told Reuters. The move would contain inflationary pressure from the ongoing Iran conflict, including higher natural gas and petrol prices, while signaling that the ECB will avoid a repeat of the inflation surge that followed Russia's 2022 invasion of Ukraine. With inflation near 3% and the euro zone economy showing resilience, officials see room for another increase after the ECB's first rate hike in nearly three years in June. However, long-term inflation expectations remain anchored at the ECB's 2% target, leaving policymakers with little appetite to signal additional tightening. Financial markets expect one or two more hikes. Officials will assess August inflation data and updated ECB staff projections before the meeting.