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ECB May Raise Rates Amid Dual Pressures
The report reflects that the European Central Bank intends to raise the deposit rate to 2.25% on June 11, despite a slowdown in economic growth and inflation rising to 3.2% in May, with expectations of an additional increase in September. Data indicate ongoing inflationary pressures coupled with a slowing economic activity, with the likelihood of further rate hikes amid high forecasts among economists, despite the risks of stagflation resulting from rising energy prices.
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