ECB to hold rates steady but keep hikes firmly on the table
The European Central Bank is expected to hold interest rates steady in its upcoming meeting, prioritizing data assessment amid rising inflation driven by higher energy prices. While inflation has surpassed the ECB's 2% target, cooling economic indicators and fragile growth prospects are reducing immediate pressure for a rate hike. However, policymakers may signal readiness for a potential rate increase as early as June, balancing inflation control against the risk of undermining economic stability.
Opening excerpt (first ~120 words) tap to expand
By Balazs Koranyi and Francesco Canepa FRANKFURT, April 30 (Reuters) - The European Central Bank will keep interest rates unchanged on Thursday like most of its global peers this week, but it is also likely to signal that a rate hike - perhaps as soon as June - may be needed to combat an energy-driven consumer price surge. Inflation has soared well above the ECB’s 2% target level since the start of the Iran war and policymakers are nervously watching to see whether the rise becomes embedded in the economy, creating second-round price effects that make rapid inflation self-sustaining.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at Investing.com — News.