Forecast for the European Central Bank to pause hiking in September

<p>European Central Bank minutes were published Thursday:</p><ul><li><a href="https://www.forexlive.com/news/forexlive-european-fx-news-wrap-euro-falls-as-ecb-rate-hike-bets-abate-20230831/" target="_blank" rel="follow" data-article-link="true">ForexLive European FX news wrap: Euro falls as ECB rate hike bets abate</a></li></ul><p>Nordea's assessment remains that the Bank has finished hiking rates;</p><ul><li>The monetary policy account from the ECB’s July meeting did not offer much guidance on what the ECB would do at its September meeting</li><li>"The activity data since the July meeting has been weak, while inflation has proved to be sticky. In fact, stagflation risks were mentioned twice in the account. A few of the more hawkish Governing Council members have talked in favour of another hike lately, while most, including Executive Board member Schnabel today, have kept an open mind</li><li>"We stick to our long-held baseline that rates have peaked at 3.75%, and think the ECB will pause hiking in September, while retaining a tightening bias. It will be a close call, though, and there may be an intense battle ahead between those in favour of hiking and the ones wanting to keep rates unchanged at the ECB’s September meeting</li></ul><p>Federal Reserve Chair Powell, Bank of Japan Governor Ueda and European Central Bank President Lagarde </p>

This article was written by Eamonn Sheridan at www.forexlive.com.