Central Banks
ECB to Slow Hike Pace as It Preps Market for QT: Decision Guide
- Economists see deposit rate being raised by a half-point to 2%
- Officials to present ‘key principles’ to shrink balance sheet
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The European Central Bank is poised to slow the recent pace of interest-rate increases and outline plans to shrink its almost €5 trillion ($5.3 trillion) stash of bonds, broadening efforts to curb inflation that’s still five times the target.
After back-to-back hikes of 75 basis points, all but three of 51 economists surveyed by Bloomberg predict a half-point move on Thursday. That would take the deposit rate to 2% — around the point widely considered to neither stimulate nor constrain the struggling euro-zone economy.