ECB Raises Rate by 25 Basis Points to 4% and Hints at Pause

The former chief economist of the ECB made a bold prediction at the European Public Real Estate Association conference in London on 6 September. Peter Praet predicted the ECB would raise the deposit rate by 25 basis points to 4% the next week but added it would accompany the statement with commentary hinting at a pause, while leaving the door open for further rate hikes to discourage a stock market rally. And his prediction turned out to be spot on.