It would be the bank’s first meeting with no change after 10 straight increases.
The European Central Bank is ready to leave interest rates unchanged on Thursday for the first time in more than a year as the Israel-Hamas conflict spreads even more gloom over already downbeat prospects for Europe’s economy.
In Europe, inflation peaked at a painful 10.6% in October for the 20 countries that use the euro currency as Russia’s war in Ukraine took a toll. Now, worries are sharpening about weakening economic growth and even the risk of a recession. Rate hikes are a central bank’s chief weapon against inflation, but they can weigh on economic growth by raising the cost of credit for consumer purchases, particularly homes, and for companies to buy new equipment and facilities.Analysts at ABN Amro bank foresee a 0.1% drop in economic output in the eurozone for the July-September quarter and minus 0.2% for the last three months of the year.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Heineken sells less beer after customers hit by price hikesCompany bosses said inflation-driven price rises were tapering off after its own cost pressures eased.
Read more »
Heineken sells less beer after customers hit by price hikesCompany bosses said inflation-driven price rises were tapering off after its own cost pressures eased.
Read more »
Europe’s central bank expected to halt rate rises as conflict casts shadowIt would be the bank’s first meeting with no change after 10 straight increases.
Read more »
Bitcoin rises to 17-month high as ETF optimism soarsDigital currency recoups all of losses sustained after collapse of Terra stablecoin
Read more »
Blackpool-under-Sea fear as water rises and extreme weather blows in'We have the largest programme in the region over the next five years, making sure our sea defences are fit for purpose over the next 100 years'
Read more »
Cambridgeshire County Council estimated budget gap rises by £7mInflation and a rise in demand for services is pushing up costs in Cambridgeshire.
Read more »