Capital.com analyst Daniela Hathorn said the ECB delivered a widely expected 25
bps rate hike but its policy statement highlighted a tension between
persistently high inflation and slowing growth. The bank raised inflation
forecasts while cutting GDP growth projections for this year and next. Hathorn
said inflation remains too high to ignore, yet growth is too weak, leaving the
ECB to balance the risks of acting too late against being overly aggressive.
