ECB to Only Hike by Quarter Point Amid Banking Turmoil, Bloomberg Economics Says

The European Central Bank will forgo earlier guidance for a half-point interest-rate increase at this week’s meeting and only hike by half that amount amid concerns over the health of the financial sector, according to Bloomberg Economics.

Economists David Powell, Maeva Cousin and Jamie Rush changed their call for the upcoming decision, and now predict only a quarter-point step.