Staying the course: Five questions for the ECB

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The European Central Bank looks set on Thursday to deliver another large interest rate rise to curb inflation. What it does after that is less certain.

ECB President Christine Lagarde, speaking in Davos recently, stressed the need for monetary policy to "stay the course."

"ECB policymakers think they have to kill inflation and will only stop hiking when they a see a big improvement in the inflation outlook," said Carsten Brzeski, global head of macro at ING.The ECB raising its deposit rate by 50 basis points to 2.5% is seen as a done deal, so markets will focus on what Lagarde has to say.

 

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