ECB Faces Rate Dilemma on Anxious Eve of Hike Touted for Months
- Frankfurt officials will make first call on impact of turmoil
- Investors have pared back expectations from half-point move
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European Central Bank officials are about to make one of the most consequential decisions in months as they judge whether market turmoil centering on Credit Suisse Group AG is bad enough to derail a long-touted interest-rate hike.
If they deliver the half-point increase that President Christine Lagarde first flagged in December and declared to be “very, very likely” little more than 10 days ago, they risk harsh hindsight judgments should the situation rapidly deteriorate.