Central Banks
ECB to Slow Rate-Hike Pace Next Week Before Hitting Peak in July
- Economists predict quarter-point steps at next three meetings
- Officials seen avoiding mistake of raising rates too far
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The European Central Bank will ease the pace of interest-rate hikes to a quarter-point next week as it weighs a pullback in bank lending against still-stubborn inflation and a surprisingly resilient economy, according to a Bloomberg survey of analysts.
Beyond the May 4 decision, officials will deliver two more moves of 25 basis points, in June and July, taking the deposit rate to a peak of 3.75%, the poll showed. The first cut in borrowing costs is envisaged as early as October.