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European Central Bank set to hike rates as it edges closer to a pivot point
The European Central Bank is set to hike rates once again on Thursday with market analysts certain that the Frankfurt intuition is nearing a peak despite inflation remaining stubbornly high. The ECB will more than likely bring its main interest rate (its deposit rate) to 3.75% as economic indicators point to slowing of the real economy and loan demand slumping to a record low. But as a July hike is widely expected, the real question at this week’s meeting will be what will happen in September?“We expect the ECB to follow through on the signaled hike this week to 3.75%,” said Mark Wall, a chief economist at ... (full story)