Economy / Markets
ECB Berlin meeting preview: analysts see second hike to 2.5% before pause, despite fragile growth
Markets and economists enter the European Central Bank's 9-10 September meeting in Berlin with a near-unanimous expectation of a quarter-point deposit-rate hike to 2.50 percent, the second and likely last move of a tightening cycle that would still be the ECB's shortest in 15 years. Despite euro area inflation at 3.3 percent in August and energy at 14.3 percent, economists warn against over-tightening into a fragile economy. ECB economists argued the current energy-driven shock differs from 2021-22, justifying a more gradual policy response.
Sources
European Central Bank — monetary policy statementEurostat — Euro indicators