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This week’s European Central Bank meeting is set to be one of the most fiercely debated in months. For more than a year there has been a broad consensus among the eurozone’s monetary policymakers that interest rates need to go higher in order to tame inflation. Rates have been pushed up by 4.25 percentage points since July 2022. But with signs of an impending eurozone recession becoming harder to ignore — and annual price growth now at half its 10.6 per cent peak — the unity over the direction of travel is fraying.
The central bank’s governors are split: some prefer another, possibly final, 25 basis point rate rise, while others are pressing for a pause. And, following a slew of weak economic data, a narrow majority of investors are now expecting…
