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ECB expected to slow rate increases to 25bp

Lower energy prices and smoother supply chains allow a gradual tightening process

European Central Bank, Frankfurt
European Central Bank, Frankfurt
Flickr/André Douqué (https://bit.ly/3VgUE6F)

The European Central Bank (ECB) is widely expected to slow down the pace of interest rate increases at its monetary policy meeting on May 4.

Most analysts forecast the governing council will increase rates by 25 basis points. This would bring the key deposit rate to 3.25%, which would be the smallest rate hike of the ongoing tightening cycle.

The ECB started increasing interest rates in July, when it boosted rates by 50bp from -0.5%. Then, it implemented two 75bp rises in September and

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