European equities inched higher Thursday despite traders maintaining a cautious approach ahead of a forthcoming decision by the European Central Bank that is likely to raise interest rates for the tenth consecutive time.

According to the data traders are pricing in a 65% likelihood that the regulator will implement a 25 basis point hike which will raise the key interest rate in Europe to a record high.

Investors and analysts had been expecting a pause in tightening until a Tuesday report by Reuters, which said the central bank was about to raise the inflation forecast for next year to over 3%, which would increase the likelihood of a rate hike.

By 07:12 GMT, the pan-European STOXX 600 crept 0.1% higher, as healthcare and energy stocks supported the index.

Deliveroo rose 6.7% following comments by activist-investor Sachem Capital in a report, which noted they thought the company could become a target for a takeover.

THG sank almost 10% following a forecast by the British online retailer that said annual revenue from continuing operations would either remain flat or fall as much as 5%.

At the same time, traders were processing a statement by China’s commerce ministry which said that an investigation into the use of Chinese government subsidies, to give Chinese electric vehicle makers an unfair advantage over European producers, would have a negative impact on economic and trade ties.