The European Central Bank raised its key interest rates in May by 25 bps after seven consecutive rate hikes. May’s decision pushed borrowing costs in the area to their highest level in fifteen years, but also pointed to a slowing pace of policy tightening.
With recent news of the eurozone being in recession, plus ECB president Lagarde’s warning of “more ground to cover” and no pauses on the rate-lifting cycle happening “anytime soon”, all eyes will be on the ECB this Thursday to see what it decides.
