The European Central Bank is set to decide on Thursday whether to raise its key interest rate to a record peak in what should be its final step in the fight against inflation, or take a break as the economy deteriorates.
The central bank for the 20 countries that share the euro faces a dilemma. Even after nine consecutive rate hikes, prices are rising at more than twice its 2% target and are not expected to slow to that level for another two years.
Analysts and investors had been leaning towards a pause in the ECB's rate increases until Reuters reported on Tuesday that the central bank wasPolicymakers saw the 2024 projection as crucial to determine whether inflation, currently"The inflation momentum is simply too strong for the ECB to pause," Danske Bank economist Piet Haines Christiansen said.
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