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ECB policymakers push back on rate cut expectations
The European Central Bank will keep interest rates high for an extended period and could even raise them again if needed, policymakers said on Friday, pushing back on some market bets that euro zone rates will start falling as soon as next spring. The ECB raised its key interest rate to a record high of 4% on Thursday but, with the euro zone economy in the doldrums, signalled that its 10th straight hike was likely to be its last. That prompted traders to ramp up speculation on when it will begin lowering borrowing costs. ECB President Christine Lagarde said the prospect of a future rate cut had not even been ... (full story)