The European Central Bank will lift rates this week, joining the US Federal Reserve, to rein in stubborn inflation even though the region is in recession.
The European Central Bank is expected to pursue more monetary tightening and flag higher interest rates next year, as it targets stubborn inflation, even though the eurozone economy is believed to be in recession.
A Reuters poll showed 51 economists out of 60 surveyed predict the ECB will elect for a 0.5 percentage point increase. “The ECB continues to believe that inflation is 'far too high', said Mr Friend. "There is a likelihood core prices will remain stubbornly high for a while yet and may not yet have reached their peak.”
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