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STORY: The European Central Bank raised rates for a ninth straight time on Thursday (July 27).

Its benchmark went up by a quarter of a percentage point to 3.75%.

That’s a 23-year high.

That had been widely expected by markets, but bank President Christine Lagarde also kept her options open on future moves:

"Could be a hike, could be a pause. And if it is a pause, it would not necessarily be for an extended period of time because as I said, it will vary from meeting to meeting because we continue to decide on a meeting by meeting basis, every time informed by the data.”

That all leaves investors in the dark over whether rates could rise again, or if this is the peak.

But analysts say it’s clear that rates won’t rise much more.

Policymakers now appear to be considering at most one more small rise.

Their dilemma is that inflation remains stubbornly high, and could take until 2025 to reach the target 2% level.

On the other hand, economic data points to a gathering slowdown in the euro zone economy, which some say argues against more hikes.

“The near-term economic outlook for the euro area has deteriorated, owing largely to weaker domestic demand. High inflation and tighter financing conditions are dampening spending."

A day earlier, the U.S. Federal Reserve also raised rates by a quarter of a percentage point, and gave few hints about moves at its next meeting.

The ECB may also feel that it’s good to keep markets guessing.