The European Central Bank is set to keep rates steady Thursday as economic activity in the euro area decelerates at a faster pace than previously expected. Shoppers in the region are holding back on spending as inflation eats up their disposable income, while the manufacturing sector has been in decline since around mid-2022. Economic theory would suggest that these two factors would drag inflation down. But whether this will prove to be the case is a still open debate inside the walls of the Frankfurt institution. “While doves will argue that it is just a question of time before weaker growth feeds into lower ... (full story)