The European Central Bank will raise interest rates for the ninth time in a row on Thursday and keep the door open to further moves as persistent inflation and growing evidence of an economic downturn pull policymakers in opposing directions.
Fighting off a historic surge in prices, the ECB has lifted borrowing costs by 4 percentage points since last July and essentially promised another quarter-point increase this month, making Thursday's decision the easiest all year.
One thing is clear, however: the end of rate increases is fast approaching and the debate appears to be about just one more small move before rate hikes are halted for whatThe ECB's problem is that inflation is coming down too slowly and could take until 2025 to fall back to 2%, as a price surge initially driven by energy has seeped into the broader economy viaWhile overall inflation is now just half its October peak, harder-to-break underlying price growth is hovering near historic highs...
That is why many investors and analysts are looking for the ECB to pull the trigger again in September and stop only if autumn wage data delivers relief.
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