The ECB will raise interest rates to 2.5%, but divided over future moves
The increase in the cost of money is tied up by the inflation data, but some are already calling for further adjustment. It will be the second rate hike in this new cycle of inflationary pressure.
The European Central Bank (BCE) is expected to raise interest rates to 2.5% on Thursday, its second increase in this new cycle of inflationary pressure. The move is widely anticipated and will be the bank's response to strong inflation data. Some policymakers, including Gediminas Šimkus and Primo Dolenc, have publicly supported the rate hike, citing the need to safeguard the inflation target.
The decision will be made at a meeting in Berlin, hosted by the Deutsche Bundesbank, and while the immediate move is clear, there is uncertainty about future rate hikes.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
