Ready for a French test?: Five questions for the ECB

By Dhara Ranasinghe and Stefano Rebaudo LONDON, Oct 23 (Reuters) The European Central Bank meets on Thursday against a backdrop of upheaval in France and an Iran war that is keeping energy prices above $100, meaning inflation risks remain elevated. How do you set rates against that backdrop? It s incredibly difficult, David Coombs, head of multi-asset investments at Rathbones Asset Management, said. Here s a look ​at five key questions for markets ahead of the October meeting. 1/ What will the ECB do? Leave its key interest rate ‌unchanged at 2.5%. A pause is widely anticipated after the ECB raised rates in June and September to counter rising inflation, as the Iran war pushed up energy prices. Economists polled by Reuters expect a quarter-point rate hike in December. I don t think they ve become materially less worried about inflation here, MUFG senior economist Henry Cook said. 2/ What will the ECB say about the rate outlook? It s likely to stick with a data-dependent approach.