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Europe’s Impending Recession Leaves ECB in Deeper Policy Bind

  • Euro zone’s energy-driven inflation may not ease by much
  • Some economists don’t see hikes going far if economy shrinks
The European Central Bank (ECB) headquarters in Frankfurt.

The European Central Bank (ECB) headquarters in Frankfurt.

Photographer: Alex Kraus/Bloomberg

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Europe is bracing for a recession that may do little to tame record inflation, testing the mettle of central bankers who’re just days away from raising interest rates after a decade-long hiatus.