ECB President Christine Lagarde has said the latest rate decision will be made based on available data, a switch from the last nine meetings when rate hikes were signaled ahead of time.
But Valli added that it was “a very close call.”Market indicators of future rate moves show many are leaning against an ECB rate hike Thursday.
They are betting that the U.S. Federal Reserve might manage a “soft landing” by finishing its rate hikes without pushing the economy into a downturn.
Economists and investors generally expect the Fed to skip a rate hike at its meeting next week, but it could increase again in November.
The flip side is that rate hikes can hurt economic growth if they're overdone.
Persons:
Christine Lagarde, Marco Valli, Valli, Klaas Knot
Organizations:
European Central Bank, ECB, Federal Reserve, UniCredit Bank, Services, U.S . Federal Reserve, Fed, Bank of
Locations:
FRANKFURT, Germany, Milan, France, Spain, Italy, Europe's, Europe, China, U.S, Central, Ukraine, Bank of England