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Will the ECB take its key rate past 4%?

French and Spanish governors say policy is working, but Nagel warns pace is too slow

European Central Bank
The European Central Bank

After the European Central Bank’s latest monetary policy decision on September 14, most observers posed a question: has it finished increasing interest rates?

That day the governing council voted to tighten financing for the tenth consecutive time, taking the deposit facility rate to 4%. Overall, the ECB has increased rates by 450 basis points since July 2022.

What prompted the question was a new sentence added to the policy statement that said “rates have reached levels that, maintained for

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