ECB set to hike 25bp to 2.5% as inflation persists

The ECB is expected to raise its main rate by 25bp to 2.5% later today, a move widely telegraphed and consistent with its tightening cycle. The key uncertainty is forward guidance—whether the bank signals a pause or further hikes amid sticky inflation. This matters as it sets the near-term path for euro-area borrowing costs and the euro.