Analysts expect smaller ECB rate rises despite uptick in inflation

Eurozone inflation rose slightly in April, but most analysts predicted the European Central Bank would still slow the pace of its interest rate rises this week due to a sharp retreat in bank lending and a dip in underlying price pressures.

Eurostat, the EU’s statistics agency, said the headline rate of eurozone inflation increased for the first time in six months to 7 per cent in the year to April. That was up from 6.9 per cent in the…