ECB Feathers Seen Ruffled, Though Policy Won’t Flinch Yet

(Bloomberg) -- European Central Bank policy makers got a nasty surprise the day before this week's decision as inflation in the euro region unexpectedly surged again to the fastest pace since the creation of the single currency. Officials have struggled to convince investors that they won't flinch in the face of such data, with financial market bets now showing an interest-rate hike of 10 basis points anticipated in September. While the Governing Council itself is markedly split between hawks and doves disagreeing on the inflation threat, as Bloomberg Economics's ECB Spectrometer shows, BE expects ECB President Christine Lagarde on Thursday to repeat her assessment that such a policy move is unlikely this year. 

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