ECB Rate Hike Expected as Currys Updates
The European Central Bank (ECB) is expected to raise its policy rates by 25 basis points on Thursday, bringing the deposit rate to 2.50%. This decision will be closely watched for its impact on the euro and future interest rate expectations.
According to ING, the ECB must balance between overtightening and underestimating inflation, making a cautious tone more likely from President Lagarde's press conference.
Kathleen Brooks of XTB notes that the July pause was framed as an explicit pause, leaving room for rate hikes without significant economic disruption. The Middle East energy price shock is driving higher rates, giving the ECB room to hike without too much pressure.
In the UK, Currys will release its trading update, with analysts expecting sustained momentum boosted by demand for 90-inch televisions and beer pumps. This will be the first opportunity for new CEO Fredrik Tonnesen to put his stamp on group strategy and communicate how he plans to spend the company's cash.