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ECB’s Razor-Edge Decision Rests on Price Outlook
The European Central Bank’s dilemma over whether to deliver a 10th straight interest-rate increase on Thursday hinges chiefly on how quickly its forecasts show inflation retreating. Updated projections for the euro zone through 2025 are now the most crucial input as officials choose to either pause their unprecedented monetary-tightening campaign or lift the deposit rate to a record 4%. While only expected to shift a little, the new price outlook has the capacity to settle what’s become a cliffhanger of a meeting: 34 economists surveyed by Bloomberg predict a hold, while 32 foresee a hike. Money markets place ... (full story)