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The European Central Bank will pause a more than year-long rate-hiking campaign in September, according to a narrow majority of economists polled by Reuters, but a further rise by year-end is still on the cards with inflation running hot. There have been nine consecutive ECB rate rises since July 2022. Faced with slowing activity - particularly in the 20-member bloc's No.1 economy Germany - Lagarde also said incoming data would be crucial for future decisions, and either a hike or pause in September was a "decisive maybe".

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