ECB Expected to Pause Interest Rate Hikes at Thursday Meeting, Signaling Policy Pause into 2023
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ECB expected to end year-long sequence of interest rate hikes at Thursday's meeting, ushering in policy pause into 2023.
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Weakening Eurozone economy removes need for further hikes, with next move seen as a rate cut in Q3 2023.
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Uncertainty remains high, so ECB to play for time and not signal future policy path yet.
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Pepp bond portfolio reduction to be discussed but volatility may delay action.
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Minimum bank reserve requirements increase controversial, decision may be postponed.