ECB caught between inflation and Ukraine war

Markets are betting the -0.5% deposit rate could rise as early as July.

President of ECB president Christine Lagarde says the ECB does not expect war in Ukraine to lead to stagflation.

Thursday's European Central Bank meeting could mark another tense moment for policymakers caught between record-high inflation and the economic hit from the war in Ukraine.

As some of the most dovish major central banks change tune to tackle surging inflation, some ECB Governing Council members are also pushing for an interest rate rise sooner rather than later.