ECB Sticks to Gradual Stimulus Exit as Bets on Hikes Build
- Record inflation challenges idea rates won’t rise this year
- Investors looking for hawkish signs at Lagarde news conference
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The European Central Bank renewed its pledge to withdraw pandemic stimulus only gradually, even after a record inflation reading fed market expectations for a first interest-rate hike in more than a decade this year.
A day after data showed the steepest euro-area price gains on record -- defying predictions for a lessened pace -- the Governing Council on Thursday reiterated that it will slow bond-buying across 2022 and end asset purchases entirely before raising borrowing costs.