ECB's Rate Hike Dilemma: What's Next?

The European Central Bank (ECB) is expected to raise interest rates by a quarter percentage point to 3.75% in July, but uncertainty remains about future policy. While the ECB has previously provided guidance on future rate hikes, some analysts suggest that a September increase is not certain, leading to expectations of a more cautious approach. Core inflation remains stubbornly high, and the ECB may wait for updated economic projections in September before signaling a pause. The weakening economy and its impact on financing conditions are also factors to consider in the ECB's decision-making process.