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10 reasons why the ECB can keep interest rates on hold
The European Central Bank is learning the art of the trade-off. Its decision on 14 September on whether to raise interest rates one more time in its 14-month tightening cycle is one of the most thorny in the ECB’s 25-year history. As it stands, opinion is divided on the 26-person ECB council. Christine Lagarde, ECB president, and other council members wish to maintain harmony over the ECB’s next step as a crucial way of safeguarding its credibility. This gives different forms of bargaining advantage to the diverse sections of the council. If they operate adroitly, there are acceptable possibilities for delicate ... (full story)