Momentum Growing For ECB Rate Hike Pause As Growth Falters (RTRs Sources)

The latest Reuters sources piece notes that “European Central Bank policymakers are increasingly concerned about deteriorating growth prospects and, while the debate is still open, momentum for a pause in its rate hikes is building.”

• “Several of the sources said they saw chances evenly split between a hike and a pause, while a smaller number saw a pause as more likely. But none said they saw a hike as the most likely outcome, even if that was their preference.”
• “All the sources agreed, however, that even in case of a pause, the ECB would need to make clear its job was not done and that more policy tightening could still be needed.”