ECB Seen Pausing Rate Hikes But Turning to Reducing Bond Holdings

ECB expected to keep interest rates unchanged after 15 months of hikes, but shift focus to reducing bond holdings

Inflation easing but still high; growth slowing, raising recession risk

Debate shifting to timing of rate cuts rather than further hikes

Discussion on accelerating reduction of 1.7 trillion euro bond portfolio

Reserves hike unlikely now but could come up in spring operational review