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ECB Could Raise Rates Above 3.5%, Hold Them There, Official Says
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BERLIN—The European Central Bank could increase interest rates above 3.5% and likely won’t cut them this year as the bank moves forcefully to bring inflation back on target, a top ECB official said.
The comments by Gabriel Makhlouf, Ireland’s central-bank governor, underscore a likely divergence between the ECB and the Federal Reserve this year as Europe’s inflation rate proves sticky and its growth resilient to Russia’s war in Ukraine.
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