ECB to pause rate hikes in September

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Traders were divided on expectations for the ECB to hit the 4.0% mark, but interest rate futures put the probability of the ECB on hold in September at 60%.

Inflation won’t hit the 2.0% target until 2025 at the earliest, and more than 90% of economists polled see no rate cut until the second quarter of 2024.

The survey also showed that 53 percent expect the deposit rate to rise to 4.00 percent sometime this year, with 33 economists saying September and four saying October or December.