European Central Bank officials expect a tough debate next month on whether another interest-rate hike at the following meeting, in September, will be necessary, according to people familiar with their thinking.
(Bloomberg) — European Central Bank officials expect a tough debate next month on whether another interest-rate hike at the following meeting, in September, will be necessary, according to people familiar with their thinking.
Several officials prefer the quarter-point move flagged for July to be the last in this campaign, though they expect pushback from officials contemplating another step after that, said the people, who declined to be identified because the talks are private.
President Christine Lagarde said the ECB still has ground to cover on borrowing costs and is “very likely” to raise again on July 27. Highlighting policymakers’ commitment to data-dependency, she avoided giving guidance on what may happen beyond that as investors ramped up bets on a hike at that meeting too.
An ECB spokesperson declined to comment.
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