Institution: The European Central Bank may implement a preemptive interest rate hike this week

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Golden Financial reports that on June 8th, Swedish Nordic Skan Bank economists Pia Flomert and Markus Widen stated in a report that the European Central Bank may raise its policy interest rate by 25 basis points at this Thursday's meeting. The inflation risks brought about by rising energy prices will lead the central bank to take preemptive rate hikes, as indirect and second-round inflation effects have not yet appeared in the data. It is expected that ECB President Lagarde will spend a significant amount of time discussing the latest staff forecasts and risk assessments at the press conference. Uncertainty will be the focus, supporting a wait-and-see approach in the future. The ECB is not expected to make any pre-commitments to further rate hikes. (Jin10)
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