More on the apparent leak of an ECB rate hike coming on Thursday

The bombshell dropped earlier, sending EUR/USD higher in very earl Asia:

A little more now via Reuters citing that unnamed source for the info:

The ECB’s quarterly projections, set to be to presented to its Governing Council on Wednesday, will put inflation north of 3% in 2024, the source said, confounding expectations for a small cut. The updated 2024 projection is well above the central bank’s 2% target and will be higher than the 3% forecast in June. It is also above the 2.7% seen in a Reuters poll of economists. The source said the rate decision was still a close call and formal proposals for the meeting have not yet been presented. But the closely watched 2024 figure adds to the case for a rate hike as it appears to confirm fears that it could be harder to bring down inflation than earlier thought.

An ECB spokesman declined to comment.

Growth … will be downgraded for this year and 2024, roughly in line with market expectations, the source said.

The ECB statement is due at 1215 GMT on Thursday, 14 September 2023, 0815 US Eastern time. European Central Bank President Lagarde’s news conference begins a half hour later:

This article was written by Eamonn Sheridan at Source