As the Fed Moves Rates Higher, the ECB Charts Its Own Course

While the Fed has prepares further interest rate moves, the ECB has signaled that it won’t raise rates at least through next summer

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FRANKFURT—The European Central Bank is expected to signal its intention to keep its key interest rate below zero for at least another year on Thursday, underscoring a widening gap with the Federal Reserve which is moving steadily toward higher interest rates.

The divergence between the world’s top two central banks, reflecting a division in economic fortunes, received renewed attention last week after President Donald Trump said on CNBC that he wasn’t happy with the Fed’s recent decisions because every time the economy strengthens...