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ECB Watch: Stagflation worries
The July monetary policy account did not resolve the question of what the data-dependent ECB would do in the September meeting, but did reveal differences in views. We continue to think the central bank is done hiking, though it is a close call. The monetary policy account from the ECB’s July meeting did not offer much guidance on what the ECB would do at its September meeting. In fact, broad agreement prevailed that, ahead of its September meeting, the Governing Council should neither hint at further rate increases nor signal that it would pause in hiking rates or that it had reached the peak rate. A further rate ... (full story)