European Central Bank (ECB) President Lagarde did not indicate what the ECB would do at next Thursday’s policy meeting when she spoke Monday at a seminar organized by the European Economic and Financial Centre. Recent economic news is showing a slowdown in Eurozone economic activity, while price pressures have eased slightly, pointing to a contentious meeting as ECB policymakers decide on whether to pause its rate-hiking cycle.
ECB policymakers meeting on September 14 must assess if a recent slowdown of the economy is sufficient to warrant a pause in its rate hikes. News today showed the Eurozone Aug S&P composite PMI was revised downward by -0.3 to 46.7 from the previously reported 47.0, the steepest pace of contraction in 2-3/4 years. At its previous policy meeting in July, ECB President Lagarde said the central bank could hike or hold as it increases its focus on economic data to guide policy actions.
