ECB Officials Viewing Inflation Threat Feel Vindicated on Hike
- Confidence is growing that euro zone has withstood turmoil
- Policymakers remain concerned that inflation isn’t vanquished
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European Central Bank officials are growing increasingly confident that the euro-zone banking system has withstood financial turmoil, allowing them to envisage resuming interest-rate hikes in due course, according to people with knowledge of the matter.
Policymakers consider themselves vindicated after they followed through on their 50 basis-point hike last week despite global market volatility, said the people, who declined to be identified because ECB deliberations are confidential.