MHA economic adviser Joe Nellis said the ECB, despite weak growth, is likely to
raise its policy rate on Thursday and appear to have learned from criticism
that it reacted too slowly in 2022–23 when inflation topped 10%. He said
policymakers are prepared to act decisively to curb inflation. Nellis added
higher rates should attract capital, support the euro and exert downward
pressure on prices, though they will not fully offset the growth cost.
